The crypto industry has a lot going on right now. The year 2021 has brought an explosion of a new trend featuring NFTs, which have spread so strongly and quickly that even non-crypto institutions, groups, organizations, companies, and others are joining up. The most recent reports claim that even Playboy and airBaltic started auctioning NFTs.
Then, there are surging prices, which led Ethereum to a new all-time high recently, plus the rapid crypto adoption rate that has been turning even the biggest skeptics into crypto supporters as of late. And, of course, there is the DeFi sector, which continues to grow at a rapid pace. DeFi (decentralized finance) is continuously trying to improve itself, and bring banking services in a decentralized way, focusing on various offers and features.
One project, called Credefi, is particularly focusing on lending and investment services, alongside many others.
What is Credefi?
Credefi presents itself as a lending and investment platform that is creating a decentralized ecosystem that would solve conventional finance and decentralized finance world problems alike. It uses both centralized and decentralized domains to create a hybrid model, that will provide users different applications and greater usability in the real world. It was designed in a way where every participant can choose to borrow or lend money on a decentralized platform.
Of course, there is interest that comes with each contract, and that interest is determined by each individual user’s risk appetite, as the platform puts it.
Essentially, Credefi aims to revolutionize the way people utilize their money by providing an entire spectrum of various services creating a hybrid approach between traditional banking and DeFi.
The platform’s own job will be to connect the interested parties, although not only in the form of P2P lending/borrowing. There are plenty of projects that already do that. No, the platform has its own unique approach, where it will also allow people to invest in entire credit portfolios, and provide trade finance services directly from the users’ own wallets.
Not only that, but the platform also aims to provide the means and new opportunities to make informed investment decisions, so that users would have better chances of having a high return rate, while simultaneously helping those in need of a loan, who are being ignored by traditional banks, just because the banks believe that those people are not worth their time.
Credefi has its Own Token, CREDI
The platform also has its native token, CREDI, which will function as a reward-generating token, as well as a governance token simultaneously. Those who own it will be able to vote on various ecosystem-related decisions, or to propose their own. However, they will also receive rewards and various benefits from using the coin on the platform.
So far, everything that Credefi has done seems quite advanced and well-thought-out. However, the platform is only getting started, and it aims to bring a full spectrum of new services, similar to what banks have to offer, but in a decentralized way. Eventually, the platform wishes to create an ecosystem that would connect its users in a form of a P2P lending platform, but one that goes beyond the boundaries of anything seen so far.
The company has already partnered with the EU-licensed financial institutions, but there is a lot more work to be done down the road, and so far, the company seems rather excited to be on this path.