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Facilitators & Fiat Redemption​

       

The Facilitators & Fiat Redemption mechanism is an integral part of Chiss Protocol that bridges the gap between on-chain assets and real-world financial systems. Facilitators act as key partners in enabling users to convert their borrowed stablecoins, such as chNaira and chLira, into actual fiat currencies, thus providing users with direct access to traditional financial systems through a decentralized platform.

  • Role of Facilitators: Facilitators are third-party partners who play a crucial role in helping users redeem their borrowed stablecoins for local fiat currencies. They provide a seamless off-ramping solution that allows users to convert their on-chain assets into traditional currency, which can then be used for everyday transactions. Facilitators help ensure that users have an easy and secure way to access liquidity, thereby making Chiss Protocol more user-friendly and practical for real-world use.

  • Fiat Redemption Process: Users can redeem their stablecoins by initiating a fiat redemption request through the Chiss Protocol interface. Facilitators receive these requests and process the exchange of stablecoins for local fiat. This process is designed to be efficient and transparent, allowing users to see the exchange rate and associated fees before proceeding. Once the redemption is confirmed, users receive the fiat currency directly in their bank accounts or through other approved methods.

  • Cross-Pool Fiat Redemption: Given Chiss Protocol's cross-pool capabilities, Facilitators also play a role in supporting cross-pool fiat redemptions. For example, a user may hold chNaira but wishes to redeem it as Turkish Lira. In such cases, the Facilitators, along with the Stabilization Algorithm, enable a cross-pool swap before completing the fiat redemption. This allows users to access liquidity in different currencies without having to navigate multiple steps or incur excessive fees.

  • Security and Compliance: Facilitators are carefully selected to ensure that they meet the necessary regulatory and compliance standards. This is crucial for providing users with a secure and reliable redemption process. All fiat redemption transactions are subject to KYC/AML checks to ensure compliance with local regulations, protecting both the users and the protocol from potential fraud or misuse.

  • User Benefits: The Facilitators & Fiat Redemption mechanism provides users with a straightforward way to convert their on-chain assets into fiat currencies. This functionality is especially beneficial for users in emerging markets who need a reliable way to access liquidity in local currencies. By integrating fiat redemption directly into the Chiss Protocol, users can avoid the complexities and delays often associated with moving funds between decentralized and traditional financial systems.

The Facilitators & Fiat Redemption mechanism is a key component of Chiss Protocol, providing a vital link between decentralized finance and traditional banking. By working with trusted partners to offer seamless fiat redemptions, Chiss Protocol enhances user experience and broadens the practical use cases for its stablecoins, ultimately making decentralized finance more accessible to a wider audience. By leveraging the Stability Pool, real-time price feeds, and cross-pool capabilities, the liquidation process is designed to be efficient, transparent, and effective in maintaining the health of the protocol