otc15203 / commerce-onchain-payment-protocol

Coinbase Commerce Onchain Payment Protocol

The Coinbase Commerce Onchain Payment Protocol allows payers and merchants to transact using the blockchain as a settlement layer and source of truth. It provides the following benefits over "traditional" cryptocurrency payments:

• Guaranteed settlement: merchants always receive exactly the amount that they request.
• Automatic conversion: payers can pay with any token that has liquidity on Uniswap, without exposing merchants to price volatility.
• Removal of payment errors: it is no longer possible to pay the wrong amount or to the wrong address.

Contract Deployments

As of April 16, 2024, the Commerce Onchain Payment Protocol is deployed in the following locations:

Chain	Environment	Address
Ethereum	Mainnet	0x3263bc4976C8c180bd5EB90a57ED1A2f1CFcAC67
Ethereum	Sepolia Testnet	0x1A8f790a10D26bAd97dB8Da887D212eA49461cCC
Polygon	Mainnet	0x551c6791c2f01c3Cd48CD35291Ac4339F206430d
Polygon	Mumbai Testnet	0xBfE2eac3BA7Ac0D8B84D2E13A3f7cdD4704599e1
Base	Mainnet	0xeF0D482Daa16fa86776Bc582Aff3dFce8d9b8396
Base	Sepolia Testnet	0x1A8f790a10D26bAd97dB8Da887D212eA49461cCC

Since the contract is non-upgradeable, these addresses will change when new versions are deployed.

Browsing this Repo

The core source code can be found in Transfers.sol.

Excluded from this repo is a copy of Uniswap/permit2, which would be copied to contracts/permit2 in order to compile.

Overview

Operators

The Transfers contract facilitates payments from a payer to a merchant. Before it may be used, an "operator" must register with the contract and specify a destination for fees. This operator is responsible for setting merchants up with the protocol and providing a UI for both merchants and payers to interact with it. Registering as an operator is permissionless, and Coinbase maintains control of an address used as the operator for Coinbase Commerce.

Transfer Intents

Once an operator is registered, they may begin facilitating payments. Individual payments use a primitive called a TransferIntent, represented by a Solidity struct of the same name. This struct specifies the following:

• The merchant's address
• The currency the merchant wishes to receive
• The amount of that currency the merchant wishes to receive
• The deadline by which the payment must be made
• The payer's address
• The chain the payer will pay on
• The address any refund should be directed to
• The operator who is facilitating the payment
• The fee the operator should receive
• A unique identifier for identifying the payment
• A signature (and optional signature prefix) from the operator

Along with these attributes, a TransferIntent must be signed by the operator. This allows an operator to be selective about what payments to allow based on internal policies, legal requirements, or other reasons. It also ensures that a TransferIntent cannot be forged or have its data modified in any way.

Contract Guarantees

The contract ensures that, for a given valid TransferIntent:

• The merchant always receives the exact amount requested
• The merchant never receives payments past a stated deadline
• The merchant never receives more than one payment
• Payments may be made using the merchant's requested currency, or swapped from another token as part of the payment transaction
• Unsuccessful or partial payments will never reach the merchant, thus guaranteeing that payments are atomic. Either the merchant is correctly paid in full and the fee is correctly charged, or the transaction reverts and no state is changed onchain.

Contract payment methods

Depending on the settlement token and the input token, along with the way in which the payer allows movement of their input token, a frontend must select the appropriate method by which to pay a TransferIntent. These methods are:

• transferNative: The merchant wants ETH and the payer wants to pay ETH
• transferToken: The merchant wants a token and the payer wants to pay with that token. Uses Permit2 for token movement.
• transferTokenPreApproved: Same as transferToken, except the Transfers contract is directly approved by the payer for the payment token
• wrapAndTransfer: The merchant wants WETH and the payer wants to pay ETH
• unwrapAndTransfer: The merchant wants ETH and the payer wants to pay WETH
• unwrapAndTransferPreApproved: Same as unwrapAndTransfer, except the Transfers contract is directly approved by the payer for WETH
• swapAndTransferUniswapV3Native: The merchant wants a token and the payer wants to pay ETH. The token must have sufficient liquidity with ETH on Uniswap V3.
• swapAndTransferUniswapV3Token: The merchant wants either ETH or a token and the payer wants to pay with a different token. The payment token must have sufficient liquidity with the settlement token on Uniswap V3.
• swapAndTransferUniswapV3TokenPreApproved: Same as swapAndTransferUniswapV3Token, except the Transfers contract is directly approved by the payer for the payment token

For any EVM-compatible network where ETH is not the native/gas currency, the above descriptions should substitute that currency. For example, payments on Polygon would use MATIC in the above descriptions.

Payment Transaction Results

When the payment is successful, a Transferred event is emitted by the contract with details about:

• The operator address
• The unique id of the TransferIntent
• The merchant (recipient) address
• The payer (sender) address
• The input token that was spent by the payer
• The amount of the input token spent by the payer

In the case of errors, a specific error type is returned with details about what went wrong.