The Paycrest protocol ecosystem consists of four main participant types, each with specific roles and responsibilities. Understanding these participants is crucial for building on the protocol.

​

Sender

A KYC-verified entity that initiates either a fiat-to-stablecoin or stablecoin-to-fiat transaction.

​

Characteristics

• KYC Required: Must complete identity verification (KYC/KYB)
• API Access: Uses the Sender API to create orders or can interact directly with the Gateway contract
• Fee Structure: Zero transaction fees (all sender fees are paid by providers)
• Flexibility: Can be smart contracts, dApps, or traditional applications

​

Responsibilities

• Order Creation: Specify amount, token, recipient, and rate
• Recipient Information: Provide accurate bank account or wallet details
• Compliance: Maintain KYC status and regulatory compliance
• Monitoring: Track order status and handle webhooks

​

Use Cases

• Remittance Services: Send money to family abroad
• Business Payments: Pay suppliers in different currencies
• DeFi Applications: Bridge between crypto and traditional finance
• E-commerce: Accept crypto payments and settle in fiat

​

Recipient

The beneficiary of the transaction who receives funds without interacting with the protocol directly.

​

Characteristics

• Passive Role: No direct protocol interaction required
• Multiple Options: Can receive fiat or stablecoins
• Flexible Delivery: Bank accounts, mobile wallets, or crypto wallets
• Zero Complexity: Doesn’t need to understand blockchain technology

​

Delivery Methods

• Bank Transfer: Direct deposit to local bank account
• Mobile: Transfer to mobile wallet (M-Pesa, etc.) or mobile payment systems (UPI, PIX)
• Crypto Wallet: Receive stablecoins in specified wallet

Note: Cash pickup is not supported. All off-ramps are to fiat accounts or wallets.

​

Example Scenarios

• Family Remittance: Receive USD in local bank account
• Freelancer Payment: Get paid in local currency for crypto work
• Business Settlement: Receive supplier payments in preferred currency
• Investment Returns: Convert crypto gains to fiat

​

Provider

A KYC-verified participant that supplies fiat liquidity in exchange for stablecoins or provides stablecoins in exchange for fiat.

​

Characteristics

• Liquidity Supply: Provides fiat or crypto liquidity
• KYC/KYB Required: Business verification for compliance
• PSP Integration: Connects to Payment Service Providers
• Competitive Rates: Sets rates based on market conditions

​

Responsibilities

• Order Fulfillment: Execute payments to recipients
• Rate Management: Set competitive rates for currency pairs
• Compliance: Maintain regulatory compliance and reporting
• Infrastructure: Operate reliable payment infrastructure

​

Revenue Model

• Bid-Ask Spreads: Profit from currency exchange spreads
• Volume Incentives: Earn bonuses for high transaction volume
• Quality Bonuses: Rewards for reliable fulfillment
• Geographic Premiums: Higher rates for underserved markets

​

Provider Types

​

Aggregator

A KYC-verified entity that coordinates the entire payment process and ensures protocol efficiency.

​

Characteristics

• Order Matching: Matches orders with suitable providers
• Quality Assurance: Ensures reliable order fulfillment
• Compliance Oversight: Manages KYC and regulatory compliance
• Infrastructure: Operates high-availability nodes

​

Responsibilities

• Order Indexing: Monitor blockchain for new orders
• Provider Management: Maintain provider registry and ratings
• Order Assignment: Match orders with optimal providers
• Settlement Coordination: Coordinate multi-provider settlements
• Compliance Verification: Verify KYC and regulatory compliance
• Dispute Resolution: If an order is not fulfilled, it is automatically refunded. The aggregator does not handle disputes directly. If an order is stuck, communication between senders and providers may occur via a decentralized messaging protocol (e.g., XMTP).

​

Aggregator Functions

​

Aggregator Types

• Protocol Aggregators: Official Paycrest aggregator nodes
• Third-Party Aggregators: Independent aggregator services
• Hybrid Aggregators: Providers that also run aggregator nodes

​

Participant Relationships

​

Sender → Aggregator

• Order Submission: Senders submit orders through API
• Status Updates: Receive real-time order status updates
• Webhook Notifications: Get notified of order lifecycle events

​

Aggregator → Provider

• Order Assignment: Aggregators assign orders to providers
• Rate Management: Providers set competitive rates
• Fulfillment Coordination: Coordinate payment execution

​

Provider → Recipient

• Payment Execution: Providers execute payments to recipients
• Settlement Confirmation: Confirm successful payment delivery
• Compliance Reporting: Report transactions for regulatory compliance

​

Key Benefits