WHAT DO YOU KNOW ABOUT CREDEFI’S PLATFORM DEVELOPMENT?
AN INSIGHT ON CREDEFI’S DEVELOPMENT PHASES
As we all know, Credefi combines crypto lenders with fiat-based SME borrowers which addresses the major issues that DeFi and TradFi are now facing. Credefi has created a system that allows for lending and borrowing money on a decentralized network, with the interest rate decided by the users’ unique risk tolerance. Thereby allowing its users to invest in credit portfolios, individual loans, or trade finance straight from their own pocket. Amazing, yeah ?
Credefi’s platform is being developed in three stages. Each phase provides new services to CREDI holders and the general public. The three phases of the project are outlined here, along with the value given to both the platform and the community with each milestone.
FIRST PHASE: LENDING TO CREDIT PORTFOLIOS
On Credefi’s platform, every CREDI token holder will be able to lend in DAI, USDC, or USDT stablecoins and receive interest over the term of the loan smart contract. Participants on the site will have complete visibility over the projects in their own portfolios, as well as their individual credit scores and profiles. The platform will give users with risk assessment and credit score data, allowing them to make an informed decision about where to invest. Furthermore, they will be rewarded with CREDI tokens for lending on the site.
PHASE 2: P2P LENDING
In this phase, once a loan request is uploaded, the platform conducts a risk assessment as well as an evaluation of the applicable legal framework. The assessment will then suggest a reasonable interest rate that lenders should charge allowing token holders to invest directly in any proposed business that they believe practical and lucrative.
The partner financial institutions will assist in the design of the credit transaction, enhancing the security of the investment for lenders. Credefi’s patented algorithms will be used to compute and recommend loan parameters that are fair to both parties. Furthermore, the Credefi community will be able to review and adjust the settings in a decentralized method that is expected to produce the best results. This means that if a lender believes in a project, he may ignore all odds and fund it. In the existing financial system, this is simply not conceivable.
PHASE 3: TRADE FINANCE
During this phase, Credefi will provide trade finance to both lenders and borrowers.
How it works
A buyer who has registered on the Credefi platform will be able to express their requirements for a specific product.
Once a counterparty provider agrees to supply it, they will have access to all of the product’s documentation on the platform.
After reviewing and agreeing to the terms and conditions, the buyer will pay the requested price in stablecoins, and the platform will lock the tokens until the product is received.
All parties will be able to track the status of the items shipment.
When the buyer files a goods received notice, the locked wallet is made available to the provider, and the monies are ready for withdrawal.