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🔄 Initial Reserve Funding

The initial reserve is a reserved pool of USDC/USDT stablecoins, held in an smart contract, which enables instant settlement of the credit card transactions on the BCS platform.

While your program is running, you'll seed this reserve based on estimated transaction volume and risk, such that any card purchase is funded immediately. The reserve acts as a money bridge between your on-chain balance and the legacy card network, allowing seamless settlement in fiat while your users' Bitcoin collateral is safely stored.

Key Benefits:

  • ⭐ Provides instant settlement on each card transaction
  • 🔗 Merges on-chain stablecoins and traditional card networks
  • 🛡️ Protects program stability by continuous monitoring and replenishing

How It Works:

  • 💰 Prefund the reserve smart contract with stablecoins beforehand
  • 📏 Size of the reserve based on predicted volume and risk
  • 💳 The payments settle through the reserve instead of directly off user collateral
  • 🔄 The reserve is refilled as and when needed to ensure seamless service

Constant monitoring and occasional refilling of the reserve ensure all stakeholders are safe and offer seamless operation of your card scheme.