How off-ramp solutions can change the face of web3
You’ve gone ahead and bought a good amount of crypto using a reliable on-ramp like Onmeta. Or you have been playing this new game where you earn in crypto. Luck has been on your side, and now the gains are rolling in!
However, we can’t have all those tokens lying around for nothing, can we? Nor do we want to lose all our precious profits giving away transaction fees to overseas coin exchanges either.
What could possibly be the solution for this? To answer this, Let’s understand what Off-ramps are.
What is off-ramp? How is it useful for you as a user?
A crypto off-ramp is a mechanism that allows for economic value to flow from crypto assets back into fiat money. Basically, it’s the side of the bridge that allows users to cash out of crypto.
Whether you’re a buyer or an investor, an off-ramp service is extremely useful for you while purchasing assets and goods (whether digital or real) using crypto coins.
Thus, the crypto coins in those wallets might finally be of some use from now on.
The Broader Problem:
Why are Off-ramp services required in the first place?
Consider an example: There are many play to earn gaming companies that offer engagement rewards in the form of their native tokens. Some Web3 companies are offering to pay their staff or their partner companies in the form of their native tokens. Now what can be done with these tokens? It’s like you can pay for other goods and services using these tokens. So how do you translate this notional wealth in native tokens to real world wealth? You can try to sell these tokens. But can you? You will first have to swap these tokens for stablecoins or popular coins like Eth or BTC, thereby incurring swap fees in the process. Then you can sell these exchanged tokens on an exchange, and incur transaction fees again. Not to mention that there need to be buyers available to buy your tokens, which may not always be the case since the overall volume and liquidity of such less popular tokens would be less.
By using an off ramp service, you can quickly sell your tokens in exchange for receiving fiat currencies in your bank accounts which can then be used for everyday expenses and investments.
But, there’s a catch to this,
In many currently available off ramp services, high transaction fees (~3–5%) and long transaction time (averaging 10–60 minutes) are why this ingenious idea hasn’t fully launched itself into the Market.
The times are changing quickly, however, and companies like Onmeta are coming up with strategies that allow you to use the service with minimal (1.5%) transaction fees while giving you less transaction time (around 1 minute), giving you an efficient and smooth experience.
But what about Developers?
Right now, there’s a huge gap between DApps and the non-crypto users, both due to lack of trust as well as limited usability, thus restricting web3 developers’ user base. Users are skeptical of buying an asset if they think the asset is not liquid. By providing a quick and easy conversion to fiat, off ramp services are bridging that trust gap and making these assets “liquid” in users’ minds.
By integrating onmeta’s widget or API, your Dapp can make its remarkable features more accessible, achieving higher scalability and providing smooth user experience in conversion from crypto to fiat
Off ramp services are not only helpful to Crypto-users and Web3 developers but also to non-crypto users and Web2 developers. It can possibly play a crucial role in normalizing the usage of cryptocurrencies for everyday transactions and it can be the bridge between the two spaces of web2 and web3 that could potentially boost the user onboarding on web3 ecosystem