SOFIA, Bulgaria, April 26, 2021 (GLOBE NEWSWIRE) -- Recently, Credefi has introduced a bridge between crypto and traditional credit through DeFi. Through the platform, participants will invest in credit portfolios, individual credits and do trade finance directly through their personal wallets. It also offers peer to peer project lending, passive lending, and full spectrum of financial services.
The platform will be the first to apply the banking scoring models in DeFi. In their own term, "it's banking redefined".
How Credefi Is Making a Difference
Credefi is the world's most advanced peer 2 peer lending platform. It combines the best practices with the DeFi solution. Their hybrid mechanism helps solve real-life problems and the loopholes of the conventional banking and financial sector. They provide unique opportunities to both the lenders and the borrowers.
It's backed by a regulated EU financial institution that provides endless know-how and opportunities. It also offers legal protection for both lenders and borrowers.
Credefi aims to be the world's leading lending platform. It wants to provide opportunities to people to participate in the global credit market while maximizing their interests. Lenders are also given a chance to support the projects they believe in and would love to see them growing.
Unlike the current banking system, which gives an unsatisfying customer experience, the Credefi platform is designed so that people and businesses can help each other solve the inefficiencies of the traditional banking system.
The platform offers the first DeFi products secured by real-life assets. Their products are inelastic to market volatility. Additionally, they are designed to generate a high level of returns even in the bear market.
DeFi and Credefi Positioning
The best part about DeFi is that one doesn't require permission to participate, and the liquidity is borderless. Credefi expects its users will be mainly millennials. Meaning there will be more than 6million users in the DeFi lending and finance sector.
Credefi has been designed to solve the problems of a centralized financial system. Some of these include centralized control, bank the unbanked (participants would be able to obtain loans and operate in the world of internet commerce), solve the inefficiencies like the high credit cards interchange rates, and finally improve interoperability.
The Credefi Token System
The Credefi token follows state of the art with added incentives for users that contribute to the system stability. Protocols like AAVE and SushiSwap pioneered it. The platform has a high level of tokenomics consisting of the CREDI and xCREDI.
CREDI is an inflationary token that's used for rewards on the platform. It's also the token used in the token sale. The main utility function of CREDI is acting as an additional security layer for the loans offered in the platform.
One can obtain CREDI by buying it during the token sale, buying it from CREDI/DAI liquidity pool after the token sale on UniSwap, or get it as a reward. After obtaining CREDI, a user can decide to sell it via UniSwap, provide it as liquidity on UniSwap to earn rewards, or convert it to xCREDI.
xCREDI is a variable supply token created by stabilizing the Credefi ecosystem and burning CREDI. It's obtained when a user deposits CREDI in the security model or converting CREDI to xCREDI using the Credefi security model.
Once they obtain it, a user can decide to participate in Credefi governance, sell xCREDI on Uniswap, or provide liquidity to the xCREDI/DAI Uniswap pair and receive CREDI as an additional incentive.
Reasons to opt for Credefi Services
The Credefi team consists of international experts who have strong financial management and technical background. Their institution believes that traditional finance should open up to crypto to offer better services.
Because of the high APY, the lenders are entitled to the entire interest of the facilities they finance. The platform doesn't arbitrage between the lenders and the borrowers agreed interests. Both lenders and borrowers are guaranteed of fair deals. Credefi performs credit risk analysis on every application on the platform. They also adjust their rating to fit the actual data.
The users on the platform are guaranteed security because of the 3 layer security for their platform lenders. The process combines security models, a DeFi tuned risk assessment process, and a strategic partnership with an accredited financial institution.
To achieve truly decentralized decision-making and autonomous lending platform, it has designed a bridge between the decentralized decision by market participants and the current financial assessment.
The platform is for everyone who needs help but feels the banks have neglected them. Through their decentralized structure, they believe that participants have all the decision-making rights, and the more they are in the ecosystem, the more informed decisions they can make.
They believe the future of wealth creation lies in the concept of decentralization.
Company: Credefi Ltd.
Contact: Valery Beltchev
SOURCE: Credefi Ltd.