SmartCredit.io
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SmartCredit.io

How to Earn with SmartCredit.io?

SmartCredit.io Release 1.2 introduces staking rewards, borrower bonus rewards, and lender bonus rewards:

  • Staking rewards for holders — every week, 4,327 SMARTCREDIT tokens will be shared with stakers. This results in 40%–80% APY in SMARTCREDIT tokens.
  • Borrower bonus rewards — every week, 2,885 SMARTCREDIT tokens will be shared with borrowers and lenders. This results in 10%–50% APY in SMARTCREDIT tokens.

Every user can now earn with SmartCredit.io by using the following strategies:

  • Attractive earning strategies (Strategies 1 to 4 below)
  • Basic earning strategies (Strategies 5 to 7 below)
  • Referral rewards and first loan rewards (Strategies 8 to 9 below)

Plus a small detail — borrower needs to pay gas only for the first borrowing transaction. No gas payments are required for any subsequent borrowing transactions!

How to earn with SmartCredit.io ?

Attractive Earning Strategies

  • Strategy 1: Borrow, earn weekly bonus rewards, and stake weekly bonus rewards — results in circa 15% APY after interest payment.
  • Strategy 2: Lend, earn weekly bonus rewards, and stake weekly bonus rewards — results in circa 33% APY. See walkthrough video.
  • Strategy 3: Borrow, buy SMARTCREDIT, earn weekly bonus rewards, and stake weekly bonus rewards — results in circa 55%–60% APY. See walkthrough video.
  • Strategy 4: Monetize collateral via borrowing, buy SMARTCREDIT, earn weekly bonus rewards, stake SMARTCREDIT incl. weekly bonus rewards — results in circa 17%–21% APY. See walkthrough video.

The focus of this article is on attractive earning strategies.

Basic Earning Strategies

  • Strategy 5: Borrow, pay interest, and earn SMARTCREDIT bonus rewards for borrowing (10–20% APY).
  • Strategy 6: Lend, earn interest, and earn SMARTCREDIT bonus rewards for lending (25% APY).
  • Strategy 7: Stake SMARTCREDIT and earn staking rewards (40%–80% APY). See walkthrough video.

Referral Rewards and First Loan Rewards

These rewards are offered when the respective campaigns are active:

Strategy 1: Borrow, Earn Bonus Rewards, and Stake the Rewards

This strategy is for the borrowers:

  • Borrow on SmartCredit.io and earn bonus rewards for the borrowing (10%–50% APY).
  • Borrowing bonus rewards are assigned every Sunday, 12:00 UTC.
  • These rewards are claimable immediately via the “My Rewards” screen.
  • The borrower creates a staking position and adds these rewards every week to his staking position.
  • Additionally, the borrower can use gas-less re-staking to earn extra rewards.
  • The borrower must pay the loan principal and interest.
  • Stop staking and withdraw the SMARTCREDIT deposit plus rewards (although it’s better to reinvest the rewards).

If we assume a constant SMARTCREDIT price, this strategy results in circa 15% of APY after interest payments for the borrower.

Strategy 2: Lend, Earn Rewards, and Stake the Rewards

Another strategy is for lenders:

Lend, Earn Rewards, Stake Rewards
  • Lend on SmartCredit.io and earn bonus rewards for lending (10%–50% APY).
  • Bonus rewards are assigned every Sunday, 12:00 UTC.
  • These rewards are claimable immediately — lenders can claim their SMARTCREDIT rewards via the “My Rewards” screen.
  • Create a staking contract and add weekly lending bonus rewards into your staking position.
  • Use gas-less re-staking every week to earn extra rewards.

If we assume a constant SMARTCREDIT price, this strategy results in circa 33% of APY for the lender.

Strategy 3: Borrow, Buy SMARTCREDIT, Earn Rewards, and Stake

The idea of this strategy is to:

Borrow, Invest into SMARTCREDIT, earn rewards, stake
  • Borrow for a longer term from SmartCredit.io and pay 2% APY on ETH or 6%–9% APY on stablecoins.
  • Use the borrowed funds to buy SMARTCREDIT tokens via 1inch.
  • Stake SMARTCREDIT tokens and earn SMARTCREDIT staking rewards, 40%–80% annualized.
  • Staking rewards are allocated every week, Sunday, 12:00 UTC. However, if the user withdraws before 90 days, he will lose his rewards. So the user must stake for at least 90 days.
  • Earn bonus rewards (10%–50% APY) for borrowing — these rewards are claimable immediately.
  • Add weekly SMARTCREDIT bonus rewards into your staking position.
  • Pay the principal and the interest of the loan.
  • Use gas-less re-staking of the staking rewards and earn extra income.

If we assume a constant SMARTCREDIT price, this strategy results in circa 55%–60% of APY after interest payment for the borrower.

Strategy 4: Monetize Collateral via Borrowing, Buy SMARTCREDIT, Earn Rewards, Yield Farming

Here is overview of this strategy:

Monetize collateral via Borrowing

With Release 1.2, SmartCredit.io added support to the following tokens (see up-to-date details in: https://learn.smartcredit.io/how-does-it-work/collaterals):

  • ETH — native Ethereum
  • wETH — wrapped Ethereum
  • wBTC — wrapped Bitcoin
  • USDC — USD Circle
  • USDT — USD Tether
  • DAI — DAI stablecoin from Maker
  • PNT — Eidoo and PNT Network token
  • EPAN — Paypolitan token
  • ID — Everest token
  • SMARTCREDIT — SmartCredit.io token

Additionally, these tokens are supported from earlier releases:

  • BAT — Basic Attention token
  • BNT — Bancor token
  • CRO — Crypto.com token
  • ENJ — Enjin coin
  • LINK — Chainlink token
  • LRC — Loopring token
  • MKR — MakerDAO token
  • REP — Augur token
  • UNI — Unswap token
  • ZRX — 0x token

The idea of the collateral monetization strategy is the following:

  • Borrow for a longer term against your collateral tokens and earn bonus rewards for the borrowing.
  • Use borrowed funds to buy SMARTCREDIT via 1inch.
  • Stake SMARTCREDIT and earn 40%–80% APY for staking — the staked position starts to earn rewards from the first week. However, if the user withdraws before 90 days, then he will lose these rewards.
  • Add weekly SMARTCREDIT bonus rewards into your staking position — the staking rewards become claimable 90 days after the deposit.
  • Use the gas-less re-staking feature to earn extra rewards in SMARTCREDIT.
  • Pay back the principal and interest on the loan.

If we assume a constant SMARTCREDIT price, this strategy results in circa 17%–20% of APY after interest payment for the borrower on the collateral USD value.

Strategy 5: Borrow, pay interest, and earn SMARTCREDIT bonus rewards

This strategy is following:

  • Borrow ETH, which has low interest rate
  • User would earn weekly SMARTCREDIT bonus rewards

This results in 10–20% APY after interest payments.

User could additionally stake the bonus rewards and use gas-less re-staking later too.

Strategy 6: Lend, earn interest, and earn SMARTCREDIT bonus rewards

This strategy is following:

This results in 25–30% APY.

User could additionally stake the bonus rewards and use gas-less re-staking later too.

Strategy 7: Stake SMARTCREDIT and earn staking rewards

This strategy is following:

This results in 40%–80% APY.

Strategy 8: Borrowers receive 50 SMARTCREDIT

Borrowers receive 50 SMARTCREDIT rewards for their first loan, which is more than USD 1,000.

This reward will be claimable via the “My Rewards” screen.

Strategy 9: Affiliates earn 25 SMARTCREDIT

If you use your referral link and users subscribe via your referral link and if they do their first loan more than USD 1,000 — then you will receive 25 SMARTCREDIT rewards.

This reward will be claimable via the “My Rewards” screen.

Variables That Influence the Yield

Borrower and Lender bonus rewards are allocated every week for full last 7 days. The bonus rewards and staking rewards per week are not fixed — the weekly rewards depend on several parameters.

  • How many other users are borrowing — if total borrowing volume (open loans) is more than previous week, then weekly rewards APY is smaller than previous week. And vice versa.
  • How many other users are lending — if total lending volume (total deposits into FIF’s without SMARTCREDIT token) is more than previous week, then weekly rewards APY is smaller than previous week. And vice versa.
  • The cap on the borrower and lender rewards — the cap on the borrower rewards in USD is 10%–75% APY (based on open loans); the cap on the lender rewards is 10%–50% APY (based on total FIF deposits without SMARTCREDIT token)
  • The borrower/lender ratio on the platform — if there are more borrowers, lenders will receive more returns. And vice versa.
  • The number of booster tokens — if there are booster tokens and rewards APY is below the cap, then booster tokens will be used to increase the weekly rewards APY till the cap
  • How many other holders are staking — if there is less staking volume, then the staking rewards are higher because every week 4,327 tokens will be shared between stakers.

The scenarios above were calculated with:

  • A constant SMARTCREDIT price.
  • Borrower bonus rewards of circa 15%. These rewards will be higher if total borrowing volume is below USD 5 million.
  • Lender bonus rewards of circa 15%. These rewards will be higher if the total lending volume is below USD 5 million.

Please note: This information is not investment advice; it’s only for educational purposes.

Videos

Additional Information

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