3. Paycer Platform

The Paycer platform is a web application that will be accessible via a website and, later, via an app. The platform will offer numerous functions and financial services and will be primarily a B2C platform targeting mainstream customers. The Paycer protocol will act as a second blockchain-based backend for the Paycer platform and will connect it with the DeFi and blockchain space. The Paycer platform will link the Paycer protocol to the existing banking system, enabling a bridge between traditional and decentralized banking.

3.1 Main Features

In the following sections, the primary functions, modules, and services of the Paycer platform are listed and explained in more detail.

3.1.1 Bank Account

The Paycer bank account will be the user’s gateway between traditional finance and DeFi. The Paycer bank account will be a fully functional account like the accounts provided by banks. The bank account will be created once the user has finished his KYC (know your customer) process. This check is necessary to comply with legal requirements. Users will have several options to transfer money to their Paycer bank account, such as a SEPA transfer. All or part of the balance in the bank account can be sent to the Paycer wallet. Paycer will therefore need to get a banking licence from BaFin or establish a partnership with a partner bank to get a faster market entry.

3.1.2 Paycer Wallet

The Paycer wallet will be a fully functional crypto wallet compliant with ERC20 standards. The Paycer wallet will serve as the entry point for different blockchain-based financial services. For funds transferred from the Paycer bank account to the Paycer wallet, a daily interest rate will be paid. The technical implementation could also involve the use of crypto custody providers, as the storage of cryptocurrencies requires an approval from the BaFin (German finance authority). In this case, the crypto deposits or rather the private keys would be held in custody by a specialized provider with an existing license. Future implementations could also allow the client to voluntarily own a private key, although this would transfer all risk to the client, and we would advise against this. This is because Paycer's main focus is on providing simple and secure crypto services for all types of users. For more advanced users it will also be possible to interact with the Paycer ecosystem and services by utilizing their own wallet.

3.1.3 Lending

Paycer will provide different lending services on the Paycer platform, which will require cryptocurrency collateral that needs to be stored in the Paycer wallet. The user can then receive a loan in a coin of his choice. Only 50% of the collateral value can be taken as a loan. If the deposited collateral falls heavily in price, the borrower is informed and has a certain period of time to increase his collateral. Otherwise, the collateral might be liquidated to get the loan back. The collateral could also be provided in stablecoins to reduce the risks. The lending system will also contribute to the yields generated by Paycer.

3.1.4 Earn Interest

One of the main functions of the Paycer platform will be to earn interest as passive income. To generate interest, clients' deposits are invested in a portfolio of selected DeFi products (strategies). Thereby, only the amounts deposited in the Paycer wallet will be used for the generation and calculation of interest. The interest is calculated and paid on a daily basis. Paycer aims to ensure a safe and stable interest rate and therefore invests only in known products with a high total volume. The swap from fiat to crypto will be processed over an external on-ramp service partner.

3.1.5 Easy DeFi

Successfully investing in different DeFi products can be difficult as there is much to consider. In some cases, it is necessary to buy rather exotic cryptocurrencies and use very nested UIs. With the current flood of different DeFi platforms, it is also difficult to keep track and only invest in good projects. Therefore, Paycer will offer selected DeFi products on its platform, allowing users to invest directly in the product with their Paycer wallet balance. Users who want to take more risks and achieve even higher interest rates will have the opportunity to invest directly in individual DeFi products.

3.1.6 DeFi as a Service

Paycer will also offer yield farming strategies and services as B2B products for other companies and platforms. Therefore, companies will be able to access special Paycer B2B APIs to implement Paycer services into their applications, mobile apps, and systems.

3.2 Design Goals and Principles

Design Goals:
  • Regulated, fully legal, and transparent processes
  • Clean and easy to use UI/UX for mass adoption
  • Everyone who can use a browser should be able to use our service
  • Secure, highly available, and scalable infrastructure
  • Highly secure storage of crypto assets
  • Minimized blockchain transaction fees (transaction pooling)

3.3 Paycer Platform Architecture

In order to strengthen the Paycer platform infrastructure against attacks, highly available cloud environments will be used that are secured according to current state of the art. The Paycer platform will use cloud technology including different virtual private clouds (VPC), security groups, availability zones, web applications firewalls (WAF), application load balancers (ALB), and DDoS attack prevention to protect the Paycer platform from all types of attacks. Figure 4 displays the Paycer platform architecture on a high level. A user can create a Paycer account to interact with his Paycer bank account and make a deposit. The user can use the bank account balance to buy crypto using an on-ramp service and then store the crypto balance inside his Paycer wallet, invest it with the Paycer easy DeFi service, use it to get a loan, or simply let Paycer earn yields for the invested amount utilizing the Paycer protocol. For partner portals and other B2B clients, Paycer will also offer Paycer APIs for DeFi as a service solution. The architectural diagram is merely a simplified version of the actual architecture that will be implemented; it is presented to provide a brief understanding of what the Paycer platform is about.

3.3 Paycer Platform Architecture

Figure 4 Paycer platform high-level architectural overview