Introducing Credbull: The Pioneering Licensed On-Chain Private Credit Fund
What is Credbull?
Credbull.io is creating a premier DeFi credit platform, aiming to bring world-class performing assets through private credit for its users. Credbull offers individual investors access to an advanced and inclusive financial ecosystem through its Defi Protocol.
Credbull aims to surpass the low risk and capital preservation typical of most mutual funds by offering a 10% fixed yield on TVL, irrespective of market cycles. This is achieved through full ownership via decentralized smart contracts, governance, transparency over the deployment of underlying assets, systemic rewards programs amongst other innovative concepts.
Credbull seeks to democratize private credit, which has traditionally been accessible only to high-net-worth individuals by making private credit readily available to individual investors with a minimal investment plan, fostering a fair and inclusive financial system.
Jason Dehni, co-founder of Credbull, believes that tokenizing inefficient, inaccessible, and illiquid real-world assets could revolutionize the industry. Credbull aspires to be a leader in driving this innovation forward.
What are Private Credit Funds?
Private credit funds are investment vehicles that pool capital from investors to provide loans and other types of credit to businesses and individuals outside the traditional banking system. These funds play a significant role in the private credit market by offering an alternative source of financing, especially to companies that may not have access to conventional bank loans or public markets.
Since the market crash of 2008, investors have faced several regulations that have limited borrowers’ access to credits from banks coupled with outrageous interest, which has reduced their confidence of investors to traditional finance hence Private Credit.
Private Credit Stats
Private credit has been one of the best-performing asset classes over the past 20 years, with growth projections expected to reach $2 trillion by 2024.
Despite the exceptional performance of private credits compared to mutual funds, this asset class still faces significant barriers to entry which Credbull aims to solve through its innovative On-chain solutions.
Pitfalls of Traditional Private Credit.
Transparency: Private credit fund are not so transparent as to assets investors are getting involved in. Even though profitable, investors have are in the dark as to which asset class their capital are being deployed into.
Accessibility: The private credit asset class has not been available to all investors due to various restrictions such as high networth individuals bracket.
Centralization: Investors in Private Credit Funds are not entirely in custody of their investment and require a third party. They cannot readily liquidate and are left out of the decision making.
Credbull as a Defi solution?
As one would ask out of curiosity; why Defi? With Defi and cryptos known for their volatility. This question are in various layers.
- Stability: Users of Credbull are not overly concerned about market cycles or general volatility. Investors on Credbull utilize USDC, a stablecoin pegged to the US Dollar, for their investments. This stability shields them from regular market fluctuations.
- Better APY: Credbull unlike other Defi protocols do not give averagely lower APY as users increase but pegs users to a 10% APY which is way higher than what other defi protocols are offering.
- RWA: DeFi is typically associated with digital assets which have no usecase off-chain but Credbull offers a unique opportunity through Private Credit, allowing users to invest in real-world assets with practical use cases on-chain.
- First of its Kind: Credbull is building something unique and having a first movers advantage which gives them a head start in the On-chain Private Credit leverage to grow. They are leading the innovation and blazing new trails as they go.
- Asset Tokenization: Through Defi, Credbull gives it’s users a first hand experience on how asset tokenization works and gives them a transparent view of how their investment are being put to work. It also provides a governance gateway for them to take part in decision making (through voting) on where and what their funds are used for.
Some other Key Unique Features of Credbull
Decentralized Finance (DeFi) Protocol: Credbull operates on the blockchain, improving user security, eliminating intermediaries and potentially offering more control to users.
Leveraging Polygon Network: By using the Polygon network, Credbull might benefit from faster transaction speeds, high scalability for multiple transactions and lower fees compared to the Ethereum mainnet.
Easy Onboarding: Signing up and investing with Credbull is a very smooth process. It doesn’t involve the rigorous paper work of traditional finance.
Low Investment Minimum: Credbull has the potential to make private credit investing more accessible by offering lower minimum investment amounts.
Oncain Self Custody: Credbull provides self custody on chain with no barrier to fund access. It uses the ERC-4626 standard to give users complete custody.
Market Cycle Proof: Credbull users average-value coins which gives them gives them immunity to market price instability.
Credbull Team
Credbull is led by team members across Traditional Finance and Digital Asset with over 15 years of asset management and project building access crypto and traditional financial sectors.
Regulation
The regulatory landscape for DeFi is still evolving, and Credbull stands out as an intriguing platform that seeks to make private credit investing more accessible through DeFi. However, it’s essential to understand the potential risks before investing. Be sure to conduct thorough research on Credbull and private credit investing before making any investment decisions.
