FAQ

Why DeFi and Credefi? DeFi is the future of banking, yet it has remained isolated from the real economy. Credefi aims to bridge this gap by facilitating the flow of stablecoins to real businesses and providing fixed, non-crypto-related yields. We're changing the outdated, bureaucratic, and overregulated banking services SMEs face, offering them quick, flexible, and user-friendly funding solutions.

What are the three distinct products of Credefi? The protocol will roll out in three stages: Stage 1: Credit portfolios categorized by risk, offering fixed APYs to lenders and LPs. Stage 2: Peer-to-peer lending where borrowers and lenders can directly negotiate terms, but Credefi will provide credit scoring to ensure stability. Stage 3: Trade finance, including underwriting letters of credit and providing credit lines for cross-border and domestic transactions.

Which networks are supported? Currently, Credefi is deployed on Ethereum and Binance Smart Chain (BSC). We aim to expand to more networks in the future.

Is the APY fixed? Yes, the APY is fixed, which provides stable, predictable returns on your funds. Once you choose your portfolio, the APY remains constant throughout your lending period, regardless of market fluctuations.

What is CREDI token? CREDI is the utility token of Credefi, used for rewarding platform activity and serving as an additional security layer when staked in Module X. CREDI holders will also enjoy better terms as they stake more of the token. More details are available in our Token Economy paper.

What is xCREDI token? xCREDI is the governance token that is minted when you stake and burn CREDI in Module X. Holders of xCREDI can participate in platform governance and earn higher APYs and rewards. Additional details are in our Token Economy paper.

What is Module X and what’s its purpose? Module X is Credefi's security module, designed to bridge the gap between a borrower defaulting and the liquidation of collateral. Staking CREDI in Module X allows you to earn higher APYs and mint xCREDI. The module also includes a buyback and burn mechanism for xCREDI.

Are we backed up by any institution? Yes, Credefi has partnered with financial institutions that act as collateral administrators for the borrowers, ensuring that the collateral is properly handled and providing an added layer of security for lenders.

How do I become a Lender? To become a lender in Phase 1, you simply need to: Register an account. Connect an existing wallet or create a new one. Deposit funds and choose the portfolio, amount, and maturity for your investment.

How do I become a Borrower? Credefi currently accepts Small and Medium Enterprises (SMEs) from the European Union. If you operate a business in the EU and need funding, you can fill out the loan request form here:

Loan Request Form: https://credefi.typeform.com/loan-request

How is the interest and collateral requirement calculated? Interest and collateral requirements are calculated using our proprietary risk assessment models, validated by Experian. These models evaluate the borrower’s creditworthiness and estimate the likelihood of default, ensuring a fair interest rate and collateral.

How can you guarantee the borrower will return the funds borrowed? Credefi uses a three-level security mechanism: In-house scoring models Module X for security and collateral management Real-World Asset (RWA) collateral These combined measures provide a high level of certainty that borrowers will repay their loans.

Which types of collateral do you accept? We accept traditional finance collateral, including: Real estate Commercial real estate Cash receivables Movable assets Inventory Crypto assets (in addition to the traditional collateral types)

What is the repayment schedule? The repayment schedule is based on a TradFi model, where you pay both principal and interest in one instalment, either quarterly or monthly, depending on your chosen duration. If you opt for compounding, you’ll earn even higher APYs. Where can I buy CREDI tokens?

$CREDI can be purchased on the following platforms: Kucoin Gate.io Uniswap PancakeSwap Coinstore BitMart BingX LetsExchange RocketX Uniramp