SmartCredit.io Pilot is available and everyone can use it.
Before using it, let’s look at what are the key problems in crypto lending and how SmartCredit.io provides a solution to these problems.
Key problems in the Crypto Lending
- Borrowers have today too high collateral requirements – Maker, Compound have ca 350% – 400% collateral to the loan ratio. This means the borrowers can borrow little relative to their collateral
- Limited choice of collateral – Borrowers on Maker or Compound have limited choice of collateral (just 4 or 5 tokens)
- Lenders cannot transfer their loans or parts of the loans to other parties during the loan term
- Other platforms would like to earn revenues with value-adding services for example via offering credit via an API
- Investors would like to earn passive income with no activity
- The majority of existing solutions control their client’s private keys. For example, Nexo or Celcius platform is an online investment platform, which controls the client’s assets. They can take the client’s funds at any time and in return, they pay interest to the client. The client can withdraw his funds, but technically Nexo / Celcius have the custody of clients funds
SmartCredit.io solution to the Crypto Lending
- Non-custodial lending – only borrowers/lenders control their assets; no-one else has access to the borrowers/lenders assets
- Borrowers to have 2x smaller collateral requirements than the industry standard
- Borrowers to have a wide choice of collateral
- Lenders receive loan tokens after creating a loan. Lenders can use these loan tokens as a mean of payment (loans are tokenized and transferable)
- Holders will receive interest for the loan tokens (interest-bearing to the holder)
- Passive Investors will have “Private Fixed Income Funds”, which deliver them passive income
- Non-custodial API for the other platforms – wallets, payment engines, marketplaces.
Self Re-Inforcing Ecosystem
Every marketplace needs to create supply and demand. SmartCredit.io ecosystem is doing this via four key components. The interplay of these components results in the self-reinforcements and positive feedback loop. These are the key components and the benefits to respective users:
- 2-click crypto loans to the borrowers
- Private fixed-income funds to the investors for earning passive income on their crypto holdings
- Credit tokenization and transferability to the lenders, so that they have immediate liquidity
- Credit As A Service API for other platforms, which want to offer credit to their users
The interplay of these components is visualized on the following picture:
Please note – the client will always be in control of his private keys. The platform can never control or influence client assets!
For more information about the SmartCredit.io Self Re-Inforcing Ecosystem have a look at our blog article.
The pilot demo scenario
The demo videos below have 4 steps:
- Borrower defines loan request
- The lender accepts a loan request
- The lender uses collateralized credit coins
- The borrower pays back the loan
Detailed video overview
The video explains the concepts and shows the full demo. It’s 10 minutes long – enjoy:
How to use the system
- Go to the https://smartcredit.io/pilot
- Register via the https://onboarding.smartcredit.io
- Create two accounts — one for the borrower and the other one for the lender
- Use Google Chrome and Metamask
- Create in Metamask two accounts — one for the borrower and the other one for the lender
- Access http://app.smartcredit.io as a borrower
- Access http://app.smartcredit.io as a lender
If you have questions, please send us a message via http://22.214.171.124. Many thanks!