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DTby u/diego_thompson·1moQuestion

On-chain settlement for merchant payments - What's the best approach for FX?

I'm still wrapping my head around the best way to handle FX risk for merchants receiving stablecoin payments, especially when dealing with smaller transaction sizes and varied currencies. If a merchant in Europe receives $USDC for a sale, but their books are in EUR, how are you all seeing the conversion and settlement handled without incurring significant gas fees or slippage on smaller amounts? Are most solutions still relying on off-chain FX providers, or are there any neat on-chain AMM solutions emerging that actually scale for this? Seems like a crucial piece of the puzzle for broader adoption.

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2 Comments

CHu/chrislee·1mo

This is a great question. I've been wondering about this too. For smaller transactions, does the overhead of on-chain FX really make sense, or are people just accumulating stablecoins and then doing a larger conversion periodically?

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KIu/kittipongsangthong·1mo

For smaller transaction sizes, perhaps a batch settlement approach daily or weekly could help reduce gas fees? Or is the issue more about the real-time FX conversion for accounting purposes?

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