Crypto Collateral

Crypto Collateral are blockchain tokens, which are used in the Crypto Lending as a security for the lender. The borrower has to lock down his collateral. If the borrower will not pay principal and interest, then the collateral will be liquidated.

Crypto lending market can be segmented into:

• Custodial lending solutions like Nexo and Celsius – they are essentially wallets, where the platforms control your assets/your private keys. These keys allow them to access your assets/funds. They are using a wide range of collateral from several blockchains
• Non-custodial lending solutions – these are the DeFi solutions. These are Ethereum based solutions, which support only Ethereum based tokens. However, they support only the biggest Ethereum tokens – ca 5 zo 8 of them. The user controls his assets on these platforms, however, there is only a small choice of crypto collateral.

The end-user can decide to use custodial lending solutions, where he cannot control his assets but will have a wide choice of collateral. Or end-user can use a DeFi product, where he controls his assets, but will have a small choice of the crypto collateral.

SmartCredit.io is a hybrid solution between these two segments. SmartCredit.io does not have access to the client assets, but it offers a much higher choice of crypto collateral – ca 50 different crypto collaterals.