Feb 2, 2024
Written by @0xKaito.
This was originally composed as a tweet thread, which you can find here.
I broke down the best onramp and offramp solutions for USDC in the U.S, based on 4 factors:
Onramp fee
Offramp fee
Network (Ethereum, Polygon, Avalanche, etc)
Payment method
Considerations
This analysis does not include centralized exchanges.
It's not a comparison of the cheapest blockchain (e.g., AVAX vs SOL).
Some solutions are limited by payment methods and do not account for user experience differentiators. For example, Apple Pay is usually more expensive but offers a better user experience.
Alternative 1: Moonpay
On Ethereum:
Onramp (buy) -> $100.00 for $93.14 USDC via Debit Card.
Offramp (sell) -> $100 USDC for $95.01 USD.
On Polygon:
Onramp (buy) -> $100.00 for $96.06 USDC via Debit Card.
Offramp (sell) -> $100.00 for $95.01 USD.
Alternative 2. Onramps through Coinbase Pay, Stripe, & Sardine
On Metamask on Ethereum:
Coinbase Pay onramp -> $100 for $93.42 USDC.
Stripe onramp -> $100 for $92.45 USDC.
Sardine onramp -> $100 for $89.32 USDC.
On Metamask on Polygon:
Coinbase Pay onramp -> $100 for $96.48 USDC.
Stripe onramp -> $100 for $94.71 USDC.
Sardine onramp -> $100 for $92.16 USDC.
Alternative 2.1. Offramps through Coinbase Pay, Stripe, & Sardine
It appears that offramping on Ethereum can only be done via Moonpay or Transak through their UI, with payment methods including bank transfers and debit cards. For 0.04278 ETH (approx ~100 USDC), the return would be ~$94 USD. The accuracy of this might vary upon proceeding with transactions.
Alternative 3. Ramp Network
Ramp Network on ETH:
Onramp (buy) -> $100 USD for $93.70 USDC via Apple Pay.
Offramp (sell) -> $100 USD for $98.1 USD via Bank Transfer.
Ramp Network on AVAX:
Onramp (buy) -> $100 USDC for $96.1 USDC via Apple Pay.
Offramp (sell) -> $100 USDC for $98.09 USD via Bank Transfer.
Alternative 4. Transak Network
Transak on ETH:
Onramp (buy) -> $100 USD for $94.19 USDC via Bank Transfer.
Offramp (sell) -> $100 USDC for $93.40 USD via Debit Card.
Transak on AVAX:
Onramp (buy) -> $100 USD for $94.49 USDC via Bank Transfer.
Offramp (sell) -> $100 USDC for $93.61 USD via Debit Card.
Alternative 5. Utopia
When you onramp on Utopia, the chain doesn't matter, as you initially onramp into the Utopia app (with Avalanche under the hood), where you can then send it to any wallet, on any network for free.
Onramp (buy) -> $100 USD for $100 USDC via Bank Transfer (instant).
Offramp (sell) -> $100 USDC for $100 USD via Bank Transfer (1-4 days).
4 Key Insights
The cheapest onramp is Utopia: $100 USD for $100 USDC.
The cheapest offramp is Utopia: $100 USD for $100 USDC.
Most onramps in the US are built on Zero Hash, including Moonpay & Stripe.
Onramp/offramp fees are likely to get compressed to zero. Coinbase and Circle are well-positioned given that they offer instant/free onramps because their business model does not rely on take rates.
We're thinking a lot about this space with Utopia Labs - sign up for our waitlist here if you're interested in our work.
