Escrow vs. Payment Router

DeroPay includes two smart contracts for on-chain payments. They serve different use cases and have fundamentally different deployment models.

At a Glance

When to Use Escrow

Use escrow when the buyer needs protection or the transaction requires trust:

• Marketplaces — Buyer pays, seller ships, funds release on confirmation
• Freelance contracts — Client deposits, freelancer delivers, funds release on approval
• P2P trades — Neither party trusts the other
• High-value purchases — Where the buyer wants the ability to dispute or get a refund
• Any transaction where delivery isn't instant

The escrow contract deploys a fresh instance for each transaction. Each escrow has its own SCID, its own state, and its own lifecycle (funded → released/refunded/disputed). There is no shared state between different escrows.

import { EscrowManager } from "dero-pay/escrow";
 
const escrow = await manager.create({
  seller: "dero1qy...seller",
  amount: 500_000,       // 5 DERO
  expirySeconds: 86400,  // 24 hours
});
// escrow.scid is unique to this transaction

When to Use the Payment Router

Use the payment router when the merchant just needs to get paid:

• Retail / e-commerce — Customer pays, product ships immediately
• Subscriptions — Recurring payments to the same merchant
• Donations — One-time or recurring contributions
• Digital goods — Instant delivery, no buyer protection needed
• Any "pay and go" transaction

The payment router is deployed once by the merchant and handles every subsequent payment through the same contract. The SCID is permanent and can be shared publicly.

import { RouterManager } from "dero-pay/router";
 
// Deploy once
const router = await manager.deployRouter({ feeBasisPoints: 0 });
// router.scid is reused for every payment
 
// Use for every payment
await manager.pay(router.scid, "inv_001", 100_000n);
await manager.pay(router.scid, "inv_002", 50_000n);
await manager.pay(router.scid, "inv_003", 200_000n);
// All through the same contract

Cost Comparison

Over many payments, the router is significantly cheaper because the deployment cost is amortized across all payments.

Can I Use Both?

Yes. A merchant can deploy a payment router for standard checkout and use escrow for high-value or trust-sensitive transactions. The two systems are independent — they use different contracts, different SDK modules, and different state.

import { RouterManager } from "dero-pay/router";
import { EscrowManager } from "dero-pay/escrow";
 
// Standard payments through the router
const router = new RouterManager({ ... });
await router.pay(scid, "inv_standard_001", 10_000n);
 
// High-value escrow for a custom project
const escrow = new EscrowManager({ ... });
await escrow.create({ seller: "dero1q...", amount: 5_000_000 });