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DeFi users can now use fiat to purchase crypto on Uniswap
Investing in decentralized finance (DeFi) just got a little bit easier
Investing in decentralized finance (DeFi) just got a little bit easier as the top decentralized exchange Uniswap has announced that users can now purchase crypto through the Uniswap Web App using a credit card, debit card or bank transfer.
“Convert from fiat to crypto onto Ethereum mainnet, Polygon, Optimism, and Arbitrum, and start swapping in minutes,” the announcement from Uniswap said.
Thanks to a new partnership with MoonPay, users in more than 160 countries can buy crypto through the web app using any card or bank transfer.
Getting funds into DeFi has been a challenge up to this point as most fiat onramps exist through centralized exchanges, which require extensive KYC/AML checks and can potentially lock funds from being withdrawn.
“Decentralized exchanges (DEXs) are the safest way to trade digital assets compared to their centralized counterparts,” Uniswap said. “With self-custodial wallets, permissionless and immutable protocols, and a transparent public ledger, DEXs have built-in user protections.”
As part of the new integration, Uniswap offers the ability to exchange for USD Coin (USDC) with no spread fees and promises the lowest processing fees in the market, along with instant access to funds.
While all major payment methods like cards and bank transfers are supported, only users in most of the US, Brazil, SEPA, and the UK are currently able to perform bank transfers.
Depending on the region, the tokens available for fiat-to-crypto conversions include DAI, ETH, MATIC, USDC, USDT, WBTC, and WETH. Users in the US are restricted from purchasing WETH or WBTC.
In order to purchase using fiat through MoonPay, users will need to abide by MoonPay’s KYC/AML policy. Identity verification is not needed to use the Uniswap Protocol, and MoonPay does not share customer data with Uniswap Labs.
Uniswap Labs does not collect and store financial data such as credit card, debit card, and bank information, or personal data, such as first name, last name, street address, date of birth, email address, and IP address.
There are no minimum fees for fiat to crypto purchases, and Uniswap has negotiated with its partners to offer low spread and processing fees on all supported currencies. The minimum purchase size for most of the supported cryptocurrencies is $15.
Buy limits depend on which cryptocurrency is bought and which fiat currency is used. USDC has an upper limit of $10,000 on Arbitrum and Optimism, while other popular fiat currencies are capped at USD 12,000, GBP at 9,000, EUR at 10,000, and CAD at 16,000.
Currently, there is no fiat off-ramp available that would allow users to transfer dollars back into their bank account, but Uniswap is working on integrating an off-ramp. And while users are currently unable to directly purchase nonfungible tokens (NFTs) with fiat, they can buy Ether through MoonPay and then use those funds to purchase NFTs on the Uniswap Web App.