Frax and SmartCredit.io Announce an Exciting New Partnership!
We are happy to announce a new strategic partnership between Frax and SmartCredit.io!
Frax.finance is the first fractional algorithmic stablecoin. It introduced the concept of cryptocurrency being partially backed by collateral and partially stabilized algorithmically.
SmartCredit.io is an Ethereum-based DeFi borrowing/lending platform focusing on fixed-interest and fixed-term loans and DeFi fixed-income funds (FIF). It brings certainty and predictability to the otherwise highly volatile and unstable DeFi space. SmartCredit.io has 17’000+ registered users.
This partnership means:
- Frax.finance users can borrow/lend FRAX stablecoins via SmartCredit.io.
- Frax.finance includes SmartCredit.io’s Fixed Income Funds in the staking section of the Frax app (https://app.frax.finance/staking).
- SmartCredit.io will integrate Frax Shares (FXS) as collateral for fixed-term borrowing (available from the next Release 1.3)
- SmartCredit.io integrates FRAX stablecoin as an asset for borrowing and lending.
Why Is This Partnership Important for Frax?
Frax.finance benefits in two ways.
Increased token utility:
- Frax Shares (FXS) will be added as collateral in SmartCredit.io with the next Release — the Release 1.3. FXS used as collateral for borrowing will be locked for the term of the loan and thus taken out of circulation.
- FXS users can borrow fixed-term/fixed-interest against their FXS collateral (from the Release 1.3)
- This will reduce the overall available supply of FXS.
FRAX stablecoin as an asset in SmartCredit.io:
With the existing money market funds, the interest rate for the lender and the borrower changes with every blocktime. This means a user wouldn’t know his cost of capital. Real-world use cases require the user to know his cost of capital, which is only possible with a fixed interest loan. With the integration of FRAX into SMARTCREDIT, users can borrow FRAX on a fixed-term/fixed-interest basis and have real economic uses.
Unlike money market funds and peer to pool to peer models, in a full peer to peer model like SmartCredit.io, the interest rate of FRAX is not dependent on the utilization ratio of the pool or the change in market conditions. We have fixed interest rates for our assets based on the loan term, bringing absolute certainty to the lender and the borrower.
- Borrowers can borrow FRAX stablecoins in SmartCredit.io.
- Lenders can lend FRAX stablecoins via SmartCredit.io fixed-income funds.
This integration translates into the increased utility of FXS.
How to earn with FRAX stablecoin?
SmartCredit.io offers effective earning strategies for FRAX users:
Basic Earning Strategies
- Strategy 1: Borrow FRAX, pay interest, and earn SMARTCREDIT bonus rewards for borrowing (10–20% APY). In the present condition, the bonus rewards are high enough to make your loan interest-free.
- Strategy 2: Lend FRAX, earn interest, and earn SMARTCREDIT bonus rewards for lending (25% APY). (10–20% APY) ??
Attractive Earning Strategies
- Strategy 3: Borrow FRAX against any of the listed ERC20 collaterals, earn weekly bonus rewards in SMARTCREDIT, and stake weekly bonus rewards — results in circa 20% APY after interest payment.
- Strategy 4: Lend FRAX, earn weekly bonus rewards in SMARTCREDIT, and stake weekly bonus rewards — results in circa 33% APY.
One can also earn aggressive yield by borrowing and lending FRAX at the same time, which is a combination of the above two strategies.
Additional very efficiant strategies are described in “How to earn with SmartCredit.io?”.
Why Is This Partnership Important for SmartCredit.io?
The SmartCredit.io strategy is to grow its user base. Integrating with Frax.finance will significantly increase the SmartCredit.io user base and help our initiative of educating the world about the benefits of fixed-term lending/borrowing when compared to money market funds.
Additional Information
- Frax website
- SmartCredit.io website
- SmartCredit.io application
- How to Earn with SmartCredit.io
- SmartCredit.io launches Credit Lines, Staking, and Bonus Rewards
- Learn SmartCredit.io
Follow Us on Social Media:
- Telegram: https://t.me/fraxfinance
- Twitter: https://twitter.com/fraxfinance
- Telegram: https://t.me/SmartCredit_Community
- Twitter: https://twitter.com/smartcredit_io
