Overview: Offshore Risk or Design Shift?
Restrictions on retail yield can motivate users to seek offshore alternatives. Compliant designs and better rails mitigate the effect by preserving value and UX.
Drivers: Yield Labels, Access, and UX
Large APY labels, poor local ramp access, and slow settlement increase offshore risk. Transparency and speed reduce incentives to move.
Scenarios: When Users Move Offshore
Movement grows when offshore platforms offer clear yield labels and easy access. It shrinks when local rails deliver speed, refunds, and comparable value via rebates.
Mitigations: Compliant Value and Better Rails
Use rebates/discounts, publish refund terms, and improve on/off-ramp liquidity. Educate users on disclosures and settlement mechanics.
Implications for Platforms and Merchants
Platforms invest in compliance tooling and transparent reserves; merchants benefit from faster settlement regardless of reward labels.
Conclusion
Offshore risk depends on APY gaps, access, and UX. With compliant designs and strong rails, domestic adoption remains resilient.