SmartCredit.io Now Has 17,000 Registered Users!
We are excited to announce that SmartCredit.io now has 17,000 registered users!
SmartCredit.io is a decentralized finance (DeFi) borrowing/lending platform with a focus on:
- Fixed-term lending for borrowers
- Fixed interest rates for borrowers
- DeFi fixed-income funds for lenders
- Low collateral ratios for borrowers
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, we offer DeFi fixed-income funds for lenders. 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 the shorter term and/or longer term.
SmartCredit.io does in-the-background automated matching of borrowers’ loan requests with lenders’ fixed-income funds. But not only this, SmartCredit.io monitors the loans, and if the borrower is not paying or the borrower’s collateral value sinks too much, the loan is liquidated.
SmartCredit.io never earns on the liquidations — what remains is transferred back to the borrower. This is one of the key differences from our competitors (Aave, Compound, and Maker). Our competitors earn revenues while liquidating the under-collateralized borrower because the collateral is sold at a discount, and the remainder of the collateral value becomes 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…
SmartCredit.io is different. The remaining funds from liquidations are transferred back to the borrowers. SmartCredit.io does not earn on the borrower’s liquidations. And if the collateral does not cover the borrower’s obligations, the loss-provision fund will pay the gap to the lender.
Many borrowing platforms (custodial or noncustodial) use the peer-to-pool-to-peer business model, meaning they pool retail client assets and then lend to borrowers from these pooled assets.
Although this sounds like common sense, this approach automatically classifies the investment product as a security, which means it must 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 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 does not pool the client assets — 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 website
- SmartCredit.io application
- How to earn with SmartCredit.io
- SmartCredit.io launches Credit Lines, Staking and Borrower/Lender Rewards
- SMARTCREDIT token
- Updated SMARTCREDIT token utility from Release 1.2