Custom tokens and the USDT pool
This lets holders of your token exchange it for points with us. Exchanges are backed by USDT that you deposit with us in advance.
Before you start
This feature has to be enabled by us. Issuing and distributing tokens is also treated differently from one country and one line of business to the next. Please take advice from your own legal counsel before you begin, and then talk to us. We are not able to give a legal opinion on your particular case.
What this does
Register an ERC-20 token you have issued and anyone holding it can exchange it for points with us. Those points can then be used to pay for things within our service.
Businesses use it where a community token has been distributed but has nowhere to be spent, or to build a rewards scheme in which tokens are given out for spending or contribution and then used as points. Some groups also use it to move value between related companies or franchisees.
What you will need
Three things: an ERC-20 token that has already been issued, along with its contract address; an exchange rate saying how much USDT one token is worth; and the USDT that backs the exchanges. The last of these is covered in the next section.
Registering the token
Enter the contract address on the custom token settings screen and we read the name, symbol and decimals from the chain. Check them and save.
An error in the address carries straight through into incorrect exchanges, so please look at it once more before saving.
About the USDT deposit
When a customer exchanges tokens for points and then spends those points, we end up owing the payment in USDT. That is why we ask you to deposit USDT with us in advance, in proportion to the tokens eligible for exchange.
Required collateral = eligible tokens × exchange rate × collateral ratio
The ratio is a risk setting on our side and cannot be changed from the merchant screens.
There are two bases for "eligible tokens". The first is the default.
| Basis | What it covers | When to choose it |
|---|---|---|
| Held by our users (default) | Tokens sitting in wallets on our platform | Normal operation, backing only what we may have to pay out |
| Total supply | Every token issued | Where you want the whole supply backed |
Making a deposit
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Check the deposit address
The pool screen shows our deposit address. Please check both the network and the address before sending. Assets sent on the wrong network cannot be recovered.
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Send the USDT
Send from your own wallet.
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Record what you sent
Enter the amount and the transaction hash. We confirm it and credit your pool balance.
Setting the terms of exchange
You can pause exchanges at any time. Changing the rate also changes the collateral required, so it is worth checking both together.
| Setting | What it means |
|---|---|
| Exchanges | Open or paused. While paused, no new exchanges are accepted |
| Exchange rate | USDT per token |
| Limit per exchange | The most that can be exchanged at once |
| Monthly limit per user | The most one customer can exchange in a month |
| Exchange fee | Anywhere from 0 to 50%. Zero is allowed |
| Telegram chat ID for alerts | Fill this in and we can send collateral warnings to you on Telegram |
If collateral falls short
As holdings or rates move, the collateral required can rise above what you have deposited, and a request to top up appears. We warn you once cover drops below a set level, so there is normally room to act before it becomes a shortfall.
While collateral is short, new exchanges may stop being accepted, and your customers will see that exchanges are unavailable. We would recommend setting up the alerts so this does not take you by surprise.
What you can see on screen
The pool screen shows your deposited balance, the collateral required, your cover, your deposit history and any top-up requests. Holdings per customer are under "Balances", and completed exchanges with the USDT they consumed are under "Purchases".
When you change the rate we recalculate the requirement immediately. Network conditions occasionally delay that recalculation, but your setting is saved either way.
Did this page help?
Your answer tells us which pages need rewriting.
- The token contract address
- The exchange rate you have set
- Whether you saw a collateral shortfall warning
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