This is a text version of our AMA in chat with the Credefi project, a P2P crypto lending platform that combines the best practices of DeFi and traditional finance.
The Credefi team announced the launch of the testnet, as well as plans to launch the mainnet before the end of January. We invited representatives of the project to an AMA session to learn more about the changes that await the service and how the preparations for the launch went.
Official resources of the project: Website | Twitter | Telegram
AMA with the Inu Wars project
Incrypted: This is not our first AMA. However, let’s remind everyone and tell newcomers to the community what Credefi is.
Credefi:
My name is Ivo Grigorov and I am the CEO of Credefi. The Credefi team has over years of experience in finance — from private equity funds to commercial and central banks, and we also believe in cryptocurrencies, being in this space with 77 of the year. We have worked in senior positions in several commercial banks, private equity funds, wealth management institutions and the Central Bank of Bulgaria. In our experience, we have seen time and time again the huge shortcomings of traditional finance, while witnessing the huge growth of DeFi and the opportunities it opens up. Thus was born the vision of Credefi.
We believe that DeFi is the future of banking and are very upset that so far it has had very little connection and impact on the real economy. We aim to be the gateway to DeFi for small businesses and phase out the outdated, bureaucratic and overly regulated banking services that SMEs now have to deal with. We want to replace them with a fast, flexible, and user-friendly financing solution.
Credefi is the first DeFi player to connect crypto lenders and SME borrowers from the real economy. Our platform provides decentralized and collateralized lending to enterprise portfolios, protecting lenders and providing them with a fixed APY that is independent of the volatility of the cryptocurrency markets.
Incrypted: I’ll ask a couple of general questions, before we get to the main topic of our AMA. Credefi will present NFT technology as a revolutionary tool. Could you briefly explain how it will work?
Credefi:
We have created a derivatives instrument designed to further secure your invest in our platform and create a secondary market for your asset-backed lending. It is intended for all participants of our platform who wish to insure their lending activity against credit defaults, which allows them to take on riskier positions like in our portfolios.
We call the new instrument NDS (NFT Default Swap).
The idea is that people can wrap their LP tokens received from investing in various portfolios on the platform and issue a unique NFT that can recoup their losses and can also be traded on the secondary market. We have a very detailed article on this topic that explains everything about this revolutionary product here.
Incrypted: What financial instruments do you offer?
Credefi:
We have developed a platform so that it is suitable for both beginners and more experienced users. Our goal is to become a gateway for crypto lending for small and medium enterprises, so we had to keep in mind users who do not have previous experience in the crypto sphere.
There is no minimum investment amount, everyone depends on user preferences!
Stage 1:
Loan portfolios, which are divided into 4 categories depending on the income of the underlying projects. Each portfolio will provide fixed APY to lenders and LPs.
Phase 2:
peer-to-peer lending that encourages lenders and borrowers to directly negotiate the terms of each transaction. However, Credifi will carry out a credit scoring of each borrower to ensure the stability of the protocol and reduce the default rate.
Step 3: Trade finance in the form of underwriting of letters of credit and lines of credit for cross-border and domestic transactions.
And with our newest addition, as previously mentioned, our proprietary NDS system, we have greatly expanded our tools.
Incrypted:
Tell us about your tokens, if they have any new scenarios usage?
Credefi: Our tokenomics is designed and inspired by the latest trends and developments in this area. We have implemented a dual token economy model that keeps the platform secure and stable while increasing APY for our stakers and holders. By staking our native CREDI token on the ModuleX exchange we are developing, you will be able to get higher APY, as well as mine our xCREDI control token. In addition, we have implemented the xCREDI buyback and burn mechanism to reclaim some of the revenue generated by the protocol. Users will be able to list CREDI tokens on our ModuleX exchange and mine our xCREDI governance token.
This is a once in a lifetime opportunity and we invite all Credefi enthusiasts to dive into the details available in the article here.
Incrypted: You said in your first reply that Credefi would address the key issues that DeFi and TradFi are facing today, could you please Briefly describe to us what big problems you are facing?
Credefi:
On the DeFi side, DeFi yields are erratic, volatile and evaporating in bear markets, and the market crash in May 2021 is a clear confirmation of this. We see speculative borrowers failing to meet the supply of DeFi loans.
From TradFi’s perspective, SMEs have historically been underserved by traditional banks and borrow at consistently high rates. There are not enough lenders to meet the demand for small business loans, which is pushing them towards alternative lending solutions such as peer-to-peer and crowdfunding, which are billion dollar industries in the US and EU.
I’ll say it again , we believe DeFi is the future of banking and are very upset that so far it has had very little connection and impact on the real economy.
Incrypted: What is Credefi Testnet and for what does he need?
Credefi:
Because our community is our most important asset, the Credefi Testnet is currently underway to provide an early access 100 to community members. They will be able to use and test the UI/UX of the platform until the official launch of the platform later this month. Test tokens will be awarded, which they can freely borrow, borrow and place as they please. Their constant feedback is essential for a smooth future work of the platform. All 45 participants will receive a special reward at the end of the trial period.
Incrypted: What rewards are possible for testing?
Credefi:
Remuneration is monetary. All successful applicants will be provided with a dedicated profile on the mainnet platform with USDT already loaded onto it, which will be available for lending in our diverse list of loan portfolios. Funds will be blocked for 6 months during which Credefi will provide a minimum of 10% and maximum 45% APY.
Incrypted: When is Mainnet scheduled to launch?
Credefi:
Our network is scheduled to launch on 31 January 640 of the year. On launch day, we will host a community call where our core team will demonstrate the platform and answer questions from the community! Stay tuned for the official announcement!
Incrypted: Forbes published an article about the best business professionals in the EMEA region and placed Credefi among industry leaders such as Unicredit and Postbank (both with assets over 4 billion), highlighting the blockchain and data analytics technologies used by Credefi. Can you tell us what fintech/blockchain solutions helped Credefi get into the elite league?
Credefi:
We are very pleased that we were included in the article and that we took part in the Experian Innovation Week event! We encourage everyone to read the publications where we gave video interviews and were included in the Experian report!
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Incrypted: What are the project’s plans for 2022 year?
Credefi:
As you know , the Credefi team has a strict rule when it comes to following our core goals and roadmap: work, work, work. We can assure everyone that wonderful things are happening in our “kitchen” and all processes are going according to plan. In the first quarter, we will have great partnerships in both the cryptosphere and the traditional economy.
We have entered into strategic TradFi alliances that will be announced by the middle of the second quarter.
Please be sure to follow our Meduim and social media so everyone can see what Credefi has in store for you!
For more information about the project, see our first AMA with the project.
