In the crypto money world, there are several financial tools that offer ways to earn interest. In general, these platforms are divided into three:
- Custodial Lending Platforms
- Lending Platforms on the Crypto Exchanges
- Non-Custodial Platforms / DeFi Platforms
All these platforms take lenders assets (either in a custodial way or non-custodial way), these assets are lent out to the borrowers, and interest is paid to the lenders/investors.
Why not custodial lending platforms?
Custodial lending platforms own the private keys of their customers – these platforms own the assets and their clients have only claims to these assets. Your cryptocurrencies that you want to be protected on these platforms are used by the system to give credit to larger instituted companies. A certain proportion of the interest from these loans will return to you as interest income, the other part will be the platform service fee. However, the way your money is used is not under your control.
Additionally, this custodial lending logic makes integrations such as API integrations impossible. These custodial platforms exist just like silo platforms.
Why not lending platforms on crypto exchanges?
Crypto exchanges offer to their user’s margin borrowing and margin lending. The lenders can lend their funds to the borrowers, which can take leveraged positions in respective assets (short positions or long positions). Borrower’s assets are used as collateral for these transactions. However, these are again custodial platforms, which control your assets and have the private keys of your assets. You, a client, have only a claim to your assets – in the same way as it’s working in the traditional banking system.
What is the advantage of non-custodial platforms / DeFi platforms?
These platforms do not control your assets, they cannot access your assets. That’s the key innovation and key advantage of these platforms. You need only your Web3 compatible wallet (for example Metamask), which can be connected with a hardware wallet (for example Trezor or Ledger) – and that’s it – you don’t need anything else. You will be fully independent of the custodial systems.
Why Crypto Asset Management is a Big Thing?
Crypto asset management is creating a new horizon in the commercial world. The products, which we listed above, are just simple investment products. They are just simple lending products. However, traditional finance has real investment products – investment funds, which allow us to diversify the risk and allow us to earn a better return on a given risk profile.
That’s why we get to our key innovation:
Crypto Fixed Income Funds
We offer Crypto Fixed Income Funds. These are Personal Fixed Income Funds – they belong to the investor. These Fixed Income Funds are non-custodial – only the investor can access his funds – no one else can do this.
Private Fixed Income Fund is like an automated investment machine. This automation means managing your assets within the framework of the rules and orders you predetermined. The asset is not managed by someone else for you, instead, the fund is automated within the framework of the rules you set. In this way, maximum security and individual control are combined with a flexible and relaxed investment process.
Thanks to Private Fixed Income Funds, passive investors can invest in new loans or existing loans. All this investment process will run automatically, without any user involvement. A user can:
- Define the rules for the Fixed Income Fund
- Transfer funds into the Fixed Income Fund
- Cancel Fixed Income Fund Investment Process
- Withdraw the funds from the Fixed Income Fund
What Does SmartCredit.io Offer For Crypto Asset Management?
Smart Credit has a different paradigm than the typical lending platforms, which we described above:
- SmartCredit.io is a DeFi product – it cannot access our customers’ private keys. Therefore, all control over the assets of the borrower, lender, or investor belongs to them
- We combine the lending process and the asset management process
- The borrowers submit the loan requests into the platform
- The borrowers submit as well the collateral for their loan requests
- The lenders can accept borrowers loan requests manually OR they can use the Personal Fixed Income Funds for automated matching
- We offer API’s and Widgets’s so that our platform can be integrated into the other platforms
SmartCredit.io works with the aim of bringing a modern blockchain-based perspective to crypto asset management and creating a brand new paradigm. We integrate Blockchain’s decentralized infrastructure into crypto lending and asset management and investing processes.
Credit-Coins – the core of our platform
SmartCredit.io simplifies the asset management process with the generation of the Credit Coins (ccETH, ccDAI, etc). Credit-Coins holders enjoy the following benefits in the process:
- The Credit-Coins are the representation of the borrower’s debt payment obligation in lending processes
- Credit-Coin has a value equivalent to Ether or Stablecoins with a ratio of 1: 1.
- Credit-Coins can be kept in credit processes or transferred freely to third parties to pay – the problem of liquidity is eliminated and financial freedom is provided
- Credit-Coins generate interest on expiration. When the lender’s Credit-Coins expire, he gets an equal amount of Ether or Stablecoins AND interest.
- When the lender is using a Personal Fixed Investment Fund, then Credit-Coins are assigned to the Personal Fixed Income Fund. The principal and interest from these Credit-Coins are assigned to the Personal Fixed Income Fund, which will then automatically reinvest the funds.
Free access to the investments
We know that investment processes provide maximum profit to corporate firms when performed with traditional tools. In order to overcome the income inequality created by the current economic order, we present blockchain-based decentralized crypto management and crypto lending process. We add the Personal Fixed Investment Funds for bringing the real Crypto Asset Management to the users.