Deep dive into the Paycrest protocol architecture, participants, and core components
The Paycrest protocol is a decentralized liquidity protocol designed to bridge the gap between digital assets and real-world financial systems. This overview covers the core architecture, participants, and key components.
Paycrest exists to solve the fundamental problems with cross-border payments in emerging markets:
Our solution enables near-instant fiat/stablecoin conversion via a decentralized network of KYC-verified Providers, with zero transaction fees for senders and embedded compliance through user-friendly flows.
Our mission “To accelerate the creation of democratized payment systems of the future” is reflected in every aspect of our protocol design:
No single entity controls the flow of funds or user access. The protocol operates through a network of independent participants.
Anyone can participate as a sender, provider, or developer. No gatekeepers or exclusive access requirements.
All transactions are visible on-chain with complete audit trails. No hidden fees or opaque processes.
Local payment solutions work seamlessly with global networks, preserving local context while enabling global reach.
This mission drives our technical decisions, from the multi-chain architecture to the developer-friendly APIs that make integration accessible to everyone.
The Paycrest protocol consists of several key components working together:
The core multi-chain contract deployed on fast EVM-compatible networks (e.g., Base, Arbitrum, Lisk). It manages:
The unified protocol client that can operate in three modes:
Interfaces that allow businesses and apps to:
A registry of attestations for both Senders and Providers:
A KYC-verified entity that initiates either a fiat-to-stablecoin or stablecoin-to-fiat transaction. This can be:
The sender supplies the recipient’s fiat account information and initiates the payment order.
The beneficiary of the transaction who receives:
The recipient doesn’t need to interact with the protocol directly - they simply receive the funds through their preferred method.
A KYC-verified participant that supplies fiat liquidity in exchange for stablecoins or provides stablecoins in exchange for fiat. Providers:
A KYC-verified entity that coordinates the entire payment process:
Order Creation
Sender creates a payment order on the Gateway contract with recipient details, amount, and rate.
Aggregation
Aggregator indexes the order and matches it with suitable Providers based on rates, limits, and availability.
Provider Assignment
One or more Providers are assigned to fulfill the order, with the order potentially split across multiple Providers.
Fulfillment
Providers execute the payment:
Validation
Settlement
Refund
If the order cannot be fulfilled, funds are automatically refunded to the sender. No manual dispute process is required.
Paycrest supports the following blockchain networks for fiat and stablecoin transactions:
Support for additional networks is planned as the protocol evolves.
The Paycrest protocol implements a zero-fee experience for senders:
Providers earn fees by:
In early stages, protocol changes are ratified by a Paycrest Core Multisig:
As the protocol matures, governance will transition to:
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).
Senders can create orders via:
The Paycrest protocol is designed to be both Web3-native and accessible to traditional financial applications. The modular architecture allows for different deployment models while maintaining the core benefits of decentralization.
Deep dive into the Paycrest protocol architecture, participants, and core components
The Paycrest protocol is a decentralized liquidity protocol designed to bridge the gap between digital assets and real-world financial systems. This overview covers the core architecture, participants, and key components.
Paycrest exists to solve the fundamental problems with cross-border payments in emerging markets:
Our solution enables near-instant fiat/stablecoin conversion via a decentralized network of KYC-verified Providers, with zero transaction fees for senders and embedded compliance through user-friendly flows.
Our mission “To accelerate the creation of democratized payment systems of the future” is reflected in every aspect of our protocol design:
No single entity controls the flow of funds or user access. The protocol operates through a network of independent participants.
Anyone can participate as a sender, provider, or developer. No gatekeepers or exclusive access requirements.
All transactions are visible on-chain with complete audit trails. No hidden fees or opaque processes.
Local payment solutions work seamlessly with global networks, preserving local context while enabling global reach.
This mission drives our technical decisions, from the multi-chain architecture to the developer-friendly APIs that make integration accessible to everyone.
The Paycrest protocol consists of several key components working together:
The core multi-chain contract deployed on fast EVM-compatible networks (e.g., Base, Arbitrum, Lisk). It manages:
The unified protocol client that can operate in three modes:
Interfaces that allow businesses and apps to:
A registry of attestations for both Senders and Providers:
A KYC-verified entity that initiates either a fiat-to-stablecoin or stablecoin-to-fiat transaction. This can be:
The sender supplies the recipient’s fiat account information and initiates the payment order.
The beneficiary of the transaction who receives:
The recipient doesn’t need to interact with the protocol directly - they simply receive the funds through their preferred method.
A KYC-verified participant that supplies fiat liquidity in exchange for stablecoins or provides stablecoins in exchange for fiat. Providers:
A KYC-verified entity that coordinates the entire payment process:
Order Creation
Sender creates a payment order on the Gateway contract with recipient details, amount, and rate.
Aggregation
Aggregator indexes the order and matches it with suitable Providers based on rates, limits, and availability.
Provider Assignment
One or more Providers are assigned to fulfill the order, with the order potentially split across multiple Providers.
Fulfillment
Providers execute the payment:
Validation
Settlement
Refund
If the order cannot be fulfilled, funds are automatically refunded to the sender. No manual dispute process is required.
Paycrest supports the following blockchain networks for fiat and stablecoin transactions:
Support for additional networks is planned as the protocol evolves.
The Paycrest protocol implements a zero-fee experience for senders:
Providers earn fees by:
In early stages, protocol changes are ratified by a Paycrest Core Multisig:
As the protocol matures, governance will transition to:
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).
Senders can create orders via:
The Paycrest protocol is designed to be both Web3-native and accessible to traditional financial applications. The modular architecture allows for different deployment models while maintaining the core benefits of decentralization.