After a very successful IDO, we’re ready to hit the next milestone in CoinsPaid’s DeFi journey. From now on, merchants that keep $CPD on their balance will receive discounts of up to 40% on all our services. Resulting increased demand by merchants should benefit all $CPD holders, so it’s worth to know how discounts work if you recently bought our tokens or are considering it.
As CoinsPaid is expanding into DeFi, our main business and the key revenue stream is still crypto processing. We help more than 700+ merchants accept Bitcoin, ETH, and other crypto, so if you pay for a good or service online with BTC, there’s a good chance that the transaction passes through our gateway.
This year, we’ve already processed over $2.8 billion worth of cryptocurrency. All that revenue accumulates in merchant balances within our system until they decide to convert the funds to fiat and withdraw them to a bank account. Naturally, they’d like to make that crypto work and produce some benefits instead of just passively lying on the balance — and that’s exactly what $CPD staking is for.
How $CPD staking and discounts work on CoinsPaid
When we talk about $CPD staking, we mean simply holding tokens on a merchant balance. This is different from CoinsPaid’s yield farming program, where tokens first have to be deposited in a liquidity pool (read how to earn rewards with $CPD farming).
The main point of staking for merchants is to get discounts on crypto processing services. Normally a business pays a fee of around 1% on each payment, which is quite an attractive rate — especially since CoinsPaid doesn’t charge any hidden fees. But with a good $CPD balance and high volumes, the fees can be cut by as much as 20% — and even 40%, if the fees are paid in $CPD.
Discounts also apply to other cryptocurrency transactions, such as conversions from one coin to another and to fiat. Our upcoming services, such as CoinsPaid Media, will also be eligible for discounts.
The size of the discount depends on 3 factors:
1) The amount of $CPD in the merchant’s balance at the moment when the discount is applied to a transaction (e.g. when a payment is processed).
2) 30-day transaction volume (in USDT equivalent) on all eligible operations: payment processing, conversions, etc.
3) The currency used to pay the fees: $CPD or something else.
You can see the discount structure in the table:
For better understanding, let’s consider a simple example: if a merchant’s transaction volume was $100,000 (in the 50k-500k range), and their $CPD balance is 100,000 (in the 250k to 50k range), the resulting discount will be 10%. If the merchant chooses to pay all fees in CPD, they will get 30% off — of course, in this case they should make sure to top up the CPD balance regularly so that it doesn’t fall below 500k, or the discount rate will decrease.
In reality, our clients’ monthly transaction volumes are far higher than $100k — especially for iGaming sites. For these merchants, getting 10% or 30% off represents huge savings and a real boost to the profit margin. This is why so many of them kept asking us to launch DeFi tools like staking.
What it all means for regular $CPD holders
If you’ve just bought $CPD at the IDO or at a DEX (CPD is available on Uniswap, PancakeSwap, SushiSwap/Polygon, PlasmaSwap, 0x, and 1inch) , you might be wondering how staking for merchants will benefit you. The key takeaway is that a large portion of the 700+ merchants we serve will want to try staking — and will need to purchase $CPD or convert part of their revenue into $CPD.
Imagine an iGaming business that decides to acquire 250,000 CPD to get a 8% staking discount. At the price of $0.09 per token, that’s an equivalent of $22,500 — small change for a business of that kind but a big boost to CPD trading volumes.
Also, merchants are motivated to hold $CPD for the long term to keep enjoying the discounts. Their interest is not speculative. As a higher share of CPD flows to staking balances, the token’s overall position in the market will keep getting stronger — and this will benefit all our holders.
Staking and yield farming are just the first elements of the CoinsPaid DeFi ecosystem. Follow the updates in the official Telegram channel and don’t miss the next opportunity!