What is CREDI and what does it solve?
The CREDI token serves as the native token within the Credefi ecosystem, fulfilling multiple roles that contribute to the platform’s functionality. According to the document, CREDI is not only a rewards distribution token but also acts as an additional security layer for the platform. This dual functionality enables it to both incentivize user participation and enhance the platform’s security measures. For instance, any holder of the CREDI token has the right to lend stablecoins like DAI, USDC, or USDT on the Credefi platform, thereby earning interest for the duration of the loan smart contract. Additionally, the token has a perpetual inflation rate of approximately 5% per year based on its remaining supply, which adds another layer of complexity to its utility.
One of the key problems that CREDI aims to solve is related to loan security. Specifically, the token can be used by the Credefi platform to compensate lenders in scenarios where a loan defaults and the available collateral is insufficient to cover the principal and interest. This feature enhances the platform’s risk mitigation capabilities. Moreover, users who lend on the Credefi platform are rewarded with CREDI tokens, thereby encouraging active participation and investment. Overall, the CREDI token is designed to be a multifaceted asset within the Credefi ecosystem, offering both rewards and added security.
Token Overview
- Token name: CREDI
- Token symbol: $CREDI
- Total supply: 1,000,000,000
- Total circulation Supply: 494,600,000
Coinstore Listing
- Trading pair: CREDI / USDT
- Trade time: 22 August 2023, 18:00 (UTC+8)
- Withdrawal time: 22 August 2023, 18:00 (UTC+8)
What are the utilities of CREDI?
The CREDI token within the Credefi ecosystem serves multiple utilities, as outlined in the document:
- Rewards Distribution: CREDI functions as a rewards token, incentivizing users to participate in the platform’s activities. Users who lend stablecoins like DAI, USDC, or USDT on the platform can earn interest, and this participation is further rewarded with CREDI tokens.
- Additional Security Layer: The token acts as an extra layer of security for loans issued on the Credefi platform. In cases where a loan defaults and the collateral is insufficient to cover the loan principal and interest, CREDI can be used to compensate the lenders, thereby mitigating risk.
- Investment Opportunities: Holding CREDI tokens gives users the right to participate in various investment opportunities on the Credefi platform. They can lend in different stablecoins and have the choice to invest in different portfolios depending on their risk tolerance.
- Inflation Mechanism: The token has a perpetual inflation rate of approximately 5% per year based on its remaining supply. This inflation serves to continuously introduce new CREDI tokens into the system.
These utilities make CREDI a multifaceted asset within the Credefi ecosystem, designed to both incentivize user participation and enhance the platform’s security and functionality.
What does the project ecosystem include?
The Credefi ecosystem includes several components designed to offer a comprehensive financial platform:
- Ethereum Blockchain: The platform and its smart contracts are based on the Ethereum blockchain, which is considered a standard for DeFi projects. The platform is also considering cross-chain compatibility.
- Risk Assessment and Investment Evaluation: The platform will collect and analyze data to derive statistical indicators. This information will be used for risk assessment and investment evaluation, carried out by an in-house team of developers, mathematicians, and investors.
- Financial Institutions Partnership: Credefi collaborates with partner financial institutions to increase the security of investments for lenders. These institutions assist in the design of credit deals and, in the case of loan defaults, help in the liquidation of collateral.
- Decentralized Lending: The platform offers peer-to-peer lending, allowing users to invest directly in projects they find viable and profitable. The investments are legally protected through loan agreements designed by professionals and accredited financial institutions registered in the European Union.
- Credit Portfolios: Users have the choice to invest in different portfolios depending on their risk tolerance. The platform provides full visibility over the projects contained in these portfolios, along with their individual credit scores and profiles.
- Trade Financing: The platform also offers trade financing options for its participants, although the document does not provide detailed information on this aspect.
- Community Involvement: The Credefi community can evaluate and customize loan parameters in a decentralized manner, offering a level of customization not possible in traditional financing systems.
- Tokenomics: The ecosystem is supported by its native tokens, CREDI and xCREDI, which serve multiple utilities including rewards distribution, additional security layer, and enabling investment opportunities.
This multifaceted ecosystem aims to offer a comprehensive solution for decentralized finance, from lending and investment to risk assessment and community governance.
CREDI Official Media
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