# Corrateral Pay

StreamPayments™ Corrateral Pay feature empowers users and merchants with a new level of financial flexibility and convenience, harnessing the potential of blockchain technology to revolutionize the way transactions are conducted.

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What is Corrateral Pay?

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Corrateral Pay is a pioneering payment option that allows users to utilize their volatile crypto assets, such as STRM, USDC, or SOL, as collateral for purchases within the Stream Protocol ecosystem. By offering this feature, StreamPayments™ aims to bridge the gap between traditional commerce and the world of decentralized finance, providing an unprecedented level of freedom and opportunity for both customers and merchants.

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9.4. How Does Corrateral Pay Work?

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Temporary Collateral Locking: With corrateral pay, users have the option to temporarily lock their crypto assets as collateral for a purchase. This means that instead of parting with their valuable crypto holdings, users can retain ownership while still accessing the goods or services they desire.

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Merchant's Gain on Crypto Assets: Upon selecting corrateral pay feature, the merchant gains the ability to benefit from potential appreciation in the value of the locked crypto assets. This gain can be utilized to cover the cost of the purchased goods or services, effectively creating a win-win situation for both parties.

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Efficient Payment Settlement: As the value of the locked crypto assets rises, the merchant can use those gains to pay off the value of the purchased goods. This streamlined payment process ensures quick and efficient settlement, avoiding the delays often associated with traditional payment methods.

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Return of Original Crypto Value: Upon completion of the transaction, the customer receives back the original value of their locked crypto assets. This feature ensures that customers retain full ownership and control over their crypto holdings, even after using them as collateral.

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