SmartCredit.io ventures into the world of credit lines, staking, and bonus rewards through its decentralized finance loan marketplace. Furthermore, the platform now supports various new collaterals and assets and has enabled fiat on- and off-ramps.
SmartCredit.io enters a new chapter along its journey of revamping the finance loan marketplace segment. The decentralized marketplace specializes in fixed interest rates and fixed terms for borrowers, combined with DeFi fixed-income funds for lenders.
Its underpinning technology automatically matches borrowers’ loan requests with lenders’ fixed-income funds and auto-liquidates loans if no repayment occurs or collateral value sinks.
Unlike other DeFi protocols, SmartCredit.io never earns on liquidations. Remainders are transferred to the borrowers, negating any impact by liquidator bots looking to scoop up profit from liquidating under-collateralized borrowers.
The new iteration of SmartCredit.io introduces new features, products, and services:
- Credit lines: enabling multiple borrows against collateral with diverse types of collateral. Users pay gas for creating the credit line, depositing collateral, and repaying the loan. However, most borrowing transactions will not be subject to gas fees, as outlined here.
- Staking: All holders can participate in staking to earn SMARTCREDIT tokens. Staking requires locking up tokens locked up for at least 90 days to earn rewards.
- Borrower and lender bonus rewards: Weekly SMARTCREDIT distributed rewards are based on the borrower/lender ratio. If one segment is bigger than the other, the smaller segment will earn more rewards.
- New Collaterals and Assets: Partner tokens EPAN, ORION, PNT, and pBTC are now usable as collateral. That also applies to SMARTCREDIT, wBTC, ETH, wETH, DAI USDC, and USDT. SmartCredit.io introduces SMARTCREDIT and FRAX as new assets to borrow.
- Fiat on- and off-ramp: SmartCredit.io users can convert to and from fiat to crypto through a bank account. For high conversion wallets, users need to go through a KYC procedure for the Mt Pelerin bridge wallet.
All changes will help bridge the gap between traditional finance and the decentralized approach presented by SmartCredit.io. Furthermore, the project focuses on pure peer-to-peer transactions rather than relying on peer-to-pool-to-peer like other DeFi protocols.
The changes to SmartCredit.io come on the heels of a new partnership with Frax Finance, enabling the project to grow its user base and educate the world about the benefits of fixed-term lending and borrowing.
SmartCredit.io is an Ethereum-based DeFi peer-to-peer borrowing/lending platform focusing on fixed-interest and fixed-term loans and DeFi fixed-income funds (FIF). It brings certainty and predictability to the otherwise highly volatile and unstable DeFi space. SmartCredit.io has 17’000+ registered users.