FAQ

General FAQ

1. What is PolyFlow?

PolyFlow is a pioneering PayFi protocol that integrates traditional payments, crypto payments, and decentralized finance (DeFi). It acts as the foundational infrastructure layer for PayFi projects. PolyFlow leverages blockchain technology to provide efficient, decentralized solutions for handling real-world payment scenarios.

1. What does PolyFlow actually do for PayFi?

PolyFlow is integral to PayFi as it builds a lightweight, compliant, and DeFi-compatible business architecture free from custodial risks. PolyFlow integrates traditional payments, crypto payments, and DeFi, serving as the infrastructure layer of the PayFi network.It ensures compliance, security, and seamless integration of Real World Assets (RWAs), thus fostering a new financial paradigm and setting industry standards. By leveraging blockchain technology, PolyFlow facilitates efficient and secure value movement while handling real-world payment scenarios in a decentralized manner.

1. What are main products and services of PolyFlow?

PolyFlow offers a suite of products and services focused on enhancing blockchain-based payment and financial operations. The main products of PolyFlow include:

• PID (Payment ID): PID acts as a powerful tool for user identity verification, regulatory compliance (such as KYC/AML/CTF), privacy protection, and data sovereignty. Moreover, it supports AI data processing and "X-to-earn" functionalities.

• PLP (PolyFlow Liquidity Pool): PLP manages fund flow using smart contracts, ensuring compliant and secure handling of funds involved in payment transactions on chain.

These components support various PayFi use cases through a modular design. PolyFlow provides the infrastructure needed for diverse applications like payment gateways, cross-border transactions, onchain credit scoring, and supply chain finance.These include supply chain financing protocols, tokenization of accounts payable, support for decentralized lending, and tools for on-chain financial management. Its services aim to increase capital efficiency and enhance compliance, ultimately providing innovative financial solutions.

1. Who does PolyFlow serve?

PolyFlow serves a diverse range of clients, including businesses looking to optimize their financial operations through blockchain, DeFi protocols seeking efficient integration, and individuals or organizations interested in leveraging decentralized financial services. These includes:

• PayFi projects

• Payment Service Providers

• Exchanges

• Banks

• Settlement networks

• Individuals

Its infrastructure facilitates these entities' expansion and enhancement in the digital asset era, enabling participants to share in the profits generated by PayFi-driven returns. It caters to those looking to harness the potential of blockchain technology for more efficient financial processes.

1. Which chains does PolyFlow support?

PolyFlow will eventually support multiple blockchain networks to ensure interoperability and scalability. While the specific chains it supports can vary, it typically includes major blockchain platforms known for their robust DeFi ecosystems. The choice of supported chains is driven by the need for security, scalability, and community adoption.Currently, PolyFlow Liquidity Pool supports Tron and Ethereum Blockchain. PID can be minted on Ethereum, Tron, Scroll, Polygon, X Layer, Berachain, Bevm, Bitlayer, Kroma, Base.

1. What makes PolyFlow different?

PolyFlow stands out due to its ability to provide a compliant, secure, and decentralized infrastructure that integrates traditional payments, crypto transactions, and DeFi. Its design minimizes custodial risks and promotes direct control of cash flows by users, reducing centralization risks. PolyFlow's implementation of PID and PLP further enables efficient and risk-free on-chain custody solutions.

PID FAQ

• What is PID?

The Payment ID (PID) is a decentralized identity designed specifically for payments. It connects real-world identities with on-chain wallets, allowing users to store, verify, and manage their digital credentials. This ensures compliance with regulatory requirements while safeguarding privacy and promoting self-sovereignty.Some key features of PID include:

• Regulatory Compliance: Integrating validation information across various platforms to simplify the verification process.

• Privacy Protection: Utilizes technologies like zero-knowledge proofs to comply with AML (Anti-Money Laundering) and CTF (Counter-Terrorism Financing) obligations without exposing user privacy.

• Data Sovereignty: Returns on-chain behavioral data to users, allowing them to maintain control over their personal information.

• AI-Driven Insights: AI can analyze transaction data linked with PID to provide additional value for its owners and assist in establishing on-chain credit systems.

PID plays a crucial role in bridging traditional finance and DeFi ecosystems, offering a means to handle tasks such as identity verification, regulatory compliance, privacy protection, data sovereignty, and more.

• How do I obtain a PID?

Users can mint PID at https://app.polyflow.tech

• Once I have my PID, what can I do with it?

  1. Minting Process:

  2. The user mints a PID (Personal Identification).

  3. The user enters the personal center and follows the guidance to complete required services, such as KYC (Know Your Customer).

  4. The user selects a KYC vendor, such as Sumsub.

  5. After completing the KYC process, the user receives proof of completion, which can be stored either on-chain or off-chain.

  6. This is now your entry ticket to the PolyFlow world which will feature usage at payment gateways, liquidity provider staking, air drops and more as we build out our ecosystem.

  7. Basic KYC Interaction Process:

  8. The user, holding a PID, enters a specific project to participate in financial services.

  9. The service provider obtains the user's relevant KYC or compliance proof through the blockchain or an interface.

  10. The service provider verifies the validity and authenticity of the proof with the relevant vendor.

  11. Once validated, the user is approved and allowed to use the related services without having to do an extra KYC from the provider.

• Which chain can I mint my PID on?

A user can possess multiple PIDs, with each blockchain address corresponding to a distinct PID, and each PID is soul-bound to its respective address. Currently, you may mint on Ethereum, Tron, Scroll, Polygon, X Layer, Berachain, Bevm, Bitlayer, Kroma, Base.

• How does PID present my information to third parties?

All these PIDs can be linked to a single user account, wherein the user's KYC information is centrally stored by PolyFlow without any alteration. This KYC information is directly associated with the user's account, and users have the flexibility to actively assign the stored KYC information to their held PIDs.The user, holding a PID, enters a specific project to participate in financial services. The financial service provider obtains the user's relevant KYC or compliance proof through the blockchain or an interface and verifies the validity and authenticity of the proof with the relevant vendor. Once validated, the user is approved and allowed to use the related services.

• Does PID use my sensitive information?

PID won't keep or use any of your sensitive information. Upon completion of a valid identity verification process through Polyflow partners, an identity Proof (verifiable credentials) is generated and sent back to you. This identity proof doesn't contain any sensitive information and is managed by you.

• How does my PID calculate my onchain credit?

On-chain credit is similar to our 'trading score'. Currently, we cooperate with TrustaLabs and use their on-chain media score system to calculate and evaluate this on-chain score.

PLP FAQ

1. What is PLP?

The Payment Liquidity Pool (PLP) is designed to manage the flow of funds in payment transactions. It utilizes smart contracts to autonomously handle fund custody, providing a secure and compliant framework for the movement, custody, and issuance of digital assets.Key features of PLP include:

• Decentralized Custody: PLP provides a means for decentralized fund custody, eliminating reliance on expensive enterprise wallets traditionally used by centralized institutions.

• Liquidity Pool: By aggregating transaction funds via smart contracts, PLP supports the liquidity needs of payment transactions, facilitating financing in these processes.

• DeFi Compatibility: PLP is built to seamlessly integrate with the DeFi ecosystem, introducing DeFi logic into PayFi applications.

• Risk-Free RWA Yield: The protocol generates yield directly through real-world transaction fees, offering a stable and risk-free revenue source for DeFi markets.

PLP aims to reduce the entry barriers for businesses to Web3, allowing more innovative applications such as supply chain finance, wallet settlements, stablecoins, and insurance to flourish within the PayFi ecosystem.

1. Where is the technical documentation for using the API?

API documents are not yet available, will be made available when we officially open up the liquidity pool for public usage.

1. What are the main benefits of my project to using PLP?

The main benefits of using the PolyFlow Liquidity Pool (PLP) include:

• Risk-Free Yield: PLP generates stable, risk-free yield based on real-world transaction fees, offering a secure income source within the DeFi ecosystem.

• Decentralized Custody: Provides secure and compliant asset custody, minimizing the need for traditional intermediaries and expensive enterprise wallets.

• Liquidity Provision: By aggregating transaction funds through smart contracts, PLP supports the liquidity needs for payment transaction financing.

• Composability and Scalability: Enhances the DeFi ecosystem's adaptability, allowing PayFi applications to seamlessly integrate and grow within the rapidly evolving digital asset landscape.

• Cost-Effectiveness and Efficiency: By maintaining a static fund flow pooled within PLP, it reduces costs and increases the efficiency of financial transactions.

1. What kind of costs are there associated to using PLP?

Gas cost during wallet creation (paid by merchant)Gas cost during fund collection (can be paid by on-chain users)Gas cost during pfUSDT redemption (paid by pfUSDT holders) There are no costs associated with using PLP. On the contrary, using PLP can significantly reduce your expenses by replacing your existing enterprise wallet solution.

1. Why should I even consider using PLP to handle my payments needs?

All fund-related functions and processes are managed by smart contracts. For merchants, we engage in a decentralized infrastructure that promotes self custody and instant redemption of funds. Compare to other centralized entities where settlement might take 3 to 7 days or more. Because funds are no longer transferring wallet to wallet, it bypasses the network traffic and can provide a much smoother transaction experience for users.The current PLP offers crypto collection, wallet allocation, crypto custody, and accompanying voucher redemption functionalities.

Staking FAQ

1. What's the yield that I can expect?

The source of yield comes from payment transaction fees. PolyFlow decentralizes the process, returning the fees typically associated with traditional payments back to the protocol, which then distributes the yield to participants according to predefined rules.

1. What are the prerequisites for participation?

There are no prerequisites for participation.

1. What are the risks for this staking program?

There is literally no risk in this staking program as the yield is backed by processing fees, not speculation.

1. Where is my principal held?

The principal is held inside the staking contract but it will be used as liquidity support for pfUSDT/USDT swap. You will get an LP token representing your principal that can be used to withdraw whenever you want.

1. What is the lockup period, and how long does it take to unlock?

The Staking doesn't have any lockup period. You may redeem your principal at any time with no delays.

1. How does the Staking program generate yield?

The staking program generates yield through three sources.

• Liquidity support processing fee

  • pfUSDT holders will swap their pfUSDT for USDT for an instant liquidity unlock. This process will cost them some process fees and those fees will be compounded into the staking program.

• Protocol Reward (pending)

  • Polyflow will incentivize staked users with governance token rewards.

• pfUSDT Natural Yield

  • All those pfUSDT in staking protocol will keep their rebasing scheme which will generate natural yield for all those stakers.