Giddy Wallet and Bitrefill Integration: Pros, Cons, and Conflicts in Crypto Yield Spending

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Self-custody wallet Giddy has teamed up with Bitrefill to allow users to pay for everyday items with cryptocurrency yield. Integrating these two platforms connects the crypto and blockchain world with real-world purchases, according to Giddy CEO Eric Parker. This integration enables Giddy app users to access DeFi lending pools and other protocols to generate yield on their investments without needing to touch their initial deposit when making purchases.

One crucial aspect of the Giddy app is its auto-compounding yield. Instead of requiring users to manually harvest and re-stake rewards, the service automatically re-compounds them in a gas-free way. Moreover, Giddy app users do not need to create a seed phrase due to the account abstraction features built by the platform’s team.

Gas fees can be paid with USDC or GIDDY tokens to avoid holding multiple types of tokens. It is worth noting that GIDDY’s value has dropped 97% since its all-time high last April.

Despite these advantages, Giddy users may still have to go through a KYC process for gift cards. Bitrefill currently partners with 656 American retailers – such as Spotify, Nintendo, and Chipotle – as well as more than 5,600 worldwide. A partnership with Mastercard allows users to spend gift cards with any merchant that accepts Mastercard payments, whether online or in-person. Gift card spending limits vary depending on whether users have provided KYC information. Without it, the limit is $200.

Another factor to consider is the country restrictions on gift cards. Typically, these purchases are limited to the country where the gift card was bought and cannot be used internationally. Although users’ identities are generally not revealed during most gift card transactions, Bitrefill will report any suspicious activity and may require users to complete a KYC program to continue its services.

To maintain gift card delivery safety, Giddy app users can create a Bitrefill-supported order through the Giddy wallet integration. Users send crypto to a one-time use address provided by Bitrefill, which then sends a gift card through the preferred delivery method. A variety of cryptocurrencies are supported, including BTC (and Lightning Network), ether, USDC, USDT, litecoin, dogecoin, DASH, as well as Binance Pay and over 200 currencies offered for Binance users.

Source: Blockworks

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