Malus is a decentralized protocol providing 7% peer to peer cashback using stablecoins such as USDC, USDT, and DAI. It allows customers to receive peer to peer cashback on their purchases, and merchants to earn APY on money they would have lost giving discounts.
When a merchant wants to sell their goods and services, they would stake Aave's aTokens in a store smart contract in a 7:100 ratio for the amount they want to receive. Once payment is received, the merchant's staked aTokens will be locked as collateral in proportion to the amount received. The customer will receive 7% of their purchase in mTokens which can be spent at any store smart contract to unlocked the merchant's collateral. This allows the merchant to still attract customers to their business without giving a discount and gain yield on money that they would have lost.