SmartCredit.io
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SmartCredit.io

Paypolitan Integration with SmartCredit.io is live!

We are excited to announce that Paypolitan launched a new wallet with integrated credit functionality via SmartCredit.io.

Paypolitan users can now:

Paypolitan is a payment and billing solution with a focus on increasing crypto usage in daily transactions.

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.

Why is this partnership important for Paypolitan?

Paypolitan and SmartCredit.io partnership will enable DeFi borrowing and lending in the Paypolitan ecosystem.

Paypolitan benefits in the following way:

This integration translates into the increased utility of the EPAN tokens.

Why is this partnership important for SmartCredit.io?

SmartCredit.io strategy is to grow the user base. We do this via direct user acquisition and partnerships. We want our partners to integrate our credit solution and offer value-adding services to their users.

SmartCredit.io platform benefits from the additional Paypolitan users, which will use SmartCredit.io services. These users will bring more volume and more transactions to the platform.

About SmartCredit.io

SmartCredit.io is a Decentral Finance (DeFi) borrowing/lending platform with a focus on:

Most borrowing/lending platforms offer variable-rate, variable-term loans for borrowers. We are the opposite — we offer fixed interest rates and fixed terms for borrowers.

Why is this important? Because of the cost of capital, borrowers want to know their cost of capital. Lenders want to know how much they will earn. Both sides will have predictability.

Additionally, SmartCredit.io offers DeFi Fixed Income Funds for lenders. The lenders define what kind of loans they want to invest in — they describe their investment rules. Every lender can choose if they prefer short-term lending strategies (with less interest) or long-term lending strategies (with more interest). Every lender can define how much of their portfolio to invest in shorter-term and or longer-term.

SmartCredit.io is doing in the background automated matching of borrowers’ loan requests with the lender’s Fixed Income Funds. But not only this — SmartCredit.io is monitoring the loans, and in case the borrower is not paying, or the borrower’s collateral value sinks too much — the loans are getting liquidated.

SmartCredit.io is never earning on the liquidations — what’s remaining will be transferred back to the borrower. This is one of the key differences from our competitors (Aave, Compound, and Maker). Our competitors are earning revenues while liquidating the under-collateralized borrower — it’s because the collateral is sold at a discount, and the remaining collateral value will become the profit of liquidator bots. Most of these bots are hosted by the respective platforms. And the liquidation revenues transfer into the platform revenues, in some months even into 50% of the respective platform revenues …

As said — SmartCredit.io is different. The remaining funds from liquidations will be transferred back to the borrowers. SmartCredit.io is not earning on the borrower’s liquidations. And in case, the collateral does not cover the borrower’s obligations — in this case, the Loss Provision Fund will pay the gap to the lender.

Many borrowing platforms (custodial or noncustodial) are using the peer-to-pool-to-peer business models, meaning they pool the retail client assets and then lend to the borrowers from these pooled assets.

Although this sounds like something of common sense, this approach automatically classifies the investment product as a security, which means it needs to be registered as a security by the SEC and other regulators. And not only this — the provider of this product — be it a DAO or a limited company — will need to register as an Investment Company (sometimes called as well an Investment Fund Manager)

All peer-to-pool-to-peer business models now have regulatory challenges because they pool the retail client assets and offer yield on the pooled assets. SmartCredit.io is different. It’s not pooling the client asset — it’s pure peer-to-peer play. While our competitors will need to register as a security (and they will never get this registration), we are free from these requirements.

SmartCredit.io Partnership Model

SmartCredit.io general partnership model is:

Additional Information

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