Converting wBTC: Pegasus Guide
This guide will provide you with a clear understanding of the steps involved in converting your wBTC holdings to USD and transferring them to your bank account. We will cover each step in detail, transferring your wBTC from Coinbase to a Pegasus wallet and withdrawing your USD. We aim to be as transparent as possible, outlining the fees associated with each step and how we handle the transaction.
Understanding the Process
1
Transfer from Coinbase to a Pegasus Wallet
Start by transferring your wBTC from your Coinbase account to the wallet provided. This step may involve a network fee (gas fee) in ETH, which can either be deducted from your wBTC balance or paid using ETH from your Coinbase account. This fee varies depending on network congestion.
2
Conversion on dYdX
Once your wBTC is in your Pegasus wallet, it will be deposited to the dYdX account. dYdX is a decentralized exchange where you can trade your wBTC for USDC (USD Coin). This conversion incurs a trading fee, typically around ~0.1% of the transaction value.
Example Estimate:
(0.1% of $2,380,102.32): $2,380.10
3
Withdrawal to Bank
After converting your wBTC to USDC, you will withdraw the USDC from dYdX to Circle. Circle is a platform that allows you to transfer cryptocurrencies to your bank account. This withdrawal process might involve additional network fees.
Breakdown of Fees
Fee Reservation
Reserve Amount
We will charge a retainer of $22,500 to cover initial fees and expenses. In addition we will create a reserve equal to 3% of the wBTC Fair Market Value in your wallet in order to cover costs involved in the conversion and transfer process. This ensures a smooth transaction and addresses potential fluctuations in fees. i.e. paying higher fee to speed transactions on high network congestion
Fee Reconciliation
We reconcile the actual transaction costs against the reserved amount. If the actual fees are less than the reserve, the difference will be returned to you. If the actual fees are higher than the reserve, you will be responsible for the remaining amount.
Step-by-Step Guide: Transferring wBTC from Coinbase
1
Log into Coinbase
Begin by logging into your Coinbase account using your credentials. This can be done through the Coinbase app or website.
2
Navigate to Your wBTC Wallet
Go to the 'Assets' section of your Coinbase account and locate your wBTC wallet. This will display your current wBTC balance and allow you to manage your wBTC holdings.
3
Initiate the Transfer
Click on the 'Send' button within your wBTC wallet. This will open a transfer window where you will enter the recipient address, which is your Pegasus wallet address.
4
Confirm the Transaction
After entering the wallet's address and reviewing the transaction details, including the network fee, confirm the transfer. This will initiate the transfer of your wBTC from Coinbase to your Pegasus wallet.
Converting Your wBTC to USDC on dYdX
1
Deposit Your wBTC
After transferring your wBTC to your Pegasus Wallet, Pegasus will deposit it into your dYdX account. This process involves connecting the a wallet to dYdX and approving the transfer on DeFi and any network fees associated.
2
Trade for USDC
Once your wBTC is deposited on dYdX, it will be traded for USDC. USDC is a stabletoken pegged to the US dollar, each USDC is one USD in a bank account, allowing for a seamless stable conversion from wBTC to USD.
3
Fiat Conversion
Once the trade is confirmed on dYdX to finalize the conversion, network fees will be paid to transfer funds back to the Pegasus Wallet. Funds will then be transferred in-to & out-of Pegasus' Circle wallet to our financial institution( any Network fees being paid upon transaction confirmation).This step involves reviewing the transaction details, including the trading fee, and approving the trade.
Transferring Your USDC to Your Bank Account
Withdraw to Circle
Withdraw the USDC from dYdX to Circle. Circle is a platform that facilitates the transfer of cryptocurrencies to bank accounts.
Transfer to Bank Partner
Circle will transfer your USDC to one of our linked and approved financial institution, typically at the end of the business day. This step involves converting your USDC to USD and transferring it to our designated bank account.
Transfer to Your Bank
Finally, our bank partner will transfer the USD to your provided financial institution, typically at the end of the following business day. This step completes the entire process, allowing you to access your funds in your bank account.
Important Considerations
Security
Always double-check wallet addresses and transaction details before confirming any transactions from Coinbase. Ensure that you are sending your wBTC to the correct wallet address provided to avoid potential losses.
Network Fees
Network fees can fluctuate based on network congestion. It is important to check the estimated network fees before initiating a transaction and ensure that you have sufficient funds in your wallet to cover them. Pegasus may also choose to expedite the transaction by paying a higher network fee.
Transaction Times
The time taken for transactions can vary depending on network congestion and the specific platform used. It is essential to allow sufficient time for transactions to process, especially when transferring funds between different platforms or networks.