Module X (CPI)

Overview: Enhanced Security and Rewards for Lenders Credefi’s Module X (CPI) is a unique mechanism designed to ensure security and incentivize liquidity providers on the platform. It allows users to participate in the security module by either staking CREDI or providing liquidity in the xCREDI/USDT pool. In exchange, participants receive rewards in the form of CREDI and xCREDI, which can help protect the platform against potential loan defaults.

Security Module: Protecting Liquidity Providers In the event that a loan on the platform goes into default and collateral liquidation takes longer than expected, the security module ensures liquidity providers are compensated until the loan’s principal and interest are paid. This mechanism mitigates the risk of delayed repayment, ensuring that lenders are not left exposed.

Risks and Incentives for Token Holders

Risk: Token holders bear some risk until the liquidation of collateral takes place, especially if the loan defaults.

Incentives: CREDI Allocation: Participants in the security module will receive CREDI tokens as a reward for their participation. Governance & Profit Sharing: Through xCREDI, users gain governance rights and participate in platform decisions, along with profit-sharing and utility upgrades.

Ways to Participate in Module X There are two main ways to engage with Credefi's security module:

Deposit CREDI and Receive xCREDI Tokens: Users can deposit CREDI into the Credefi Security Module. In return, they will receive xCREDI tokens, which grant them governance rights and additional rewards.

Liquidity Provision in the xCREDI/USDT Pair: Users can provide liquidity to the xCREDI/USDT pair on UniSwap and stake their LP tokens in the security module. In addition to the liquidity provider fees, they will receive CREDI tokens as an extra incentive for participating in the security module.

Phased Rollout of the Security Module The security module will be rolled out in two distinct phases:

Centralization Phase: In this initial phase, the Credefi team will have complete control over the funds deposited into the security module. This phase ensures the platform’s smooth operation while it gains traction.

Decentralization Phase: Once the platform is more established, the use of funds will be governed by the community, where decisions will be made through governance. This gives token holders a say in the platform’s operations and ensures that the decision-making process is decentralized.

xCREDI Tier Level Benefits By staking CREDI or providing liquidity, users can earn xCREDI and unlock additional tier-based benefits: Higher Interest Rates: Users in higher tiers will receive better lending terms, including higher interest rates on their investments. Insurance Levels: The higher the tier, the greater the insurance level against defaults, further protecting the user's funds. Rewards at the End of the Period: At the end of each period, users will receive their xCREDI tokens, which give them access to further profits, governance rights, and potentially higher tier upgrades. User Journey: Lending on Credefi User Decides to Lend: The user can choose between two lending options:

2.1 Simple Lend: The user lends their funds and will receive $CREDI rewards on top of the interest from the respective product. 2.2 Upgraded Lend: The user has two options here: 2.2.a. Already Has xCREDI: If the user already possesses the necessary amount of xCREDI tokens, they can upgrade their lending terms to the next tier, unlocking higher interest rates and additional insurance. 2.2.b. Needs to Stake CREDI: If the user does not have enough xCREDI, they will be prompted to stake CREDI in the security module to upgrade their lending tier. Upon staking, the user will gain access to better lending terms and additional rewards.

Upgraded Terms & Rewards: After staking, users will enjoy higher interest rates and increased insurance coverage. At the end of the lending period, the user will receive xCREDI based on the conversion rate at the time of staking, further contributing to their long-term benefits. Rewards Mechanism: Earning $CREDI Lending Rewards: Users receive $CREDI as rewards based on their lending activity. These rewards are given on top of the interest rate of the specific product they participate in. No Tier Level Required for Basic Participation: To participate in lending activities and earn rewards, users do not need to have an upgraded tier level. The tier system provides enhanced rewards and terms, but basic users can still earn $CREDI based on their lending contributions.

Summary: Maximizing Rewards and Security Module X (CPI) ensures that Credefi's platform remains secure by incentivizing users to contribute liquidity and participate in protecting the platform from loan defaults. By staking CREDI or providing liquidity to the xCREDI/DAI pool, participants receive rewards and governance rights through xCREDI while enjoying enhanced lending terms.

Key Highlights: Security for Lenders: The module mitigates default risks by offering rewards for liquidity providers. Upgraded Lending Terms: Higher interest rates and insurance for users in upgraded tiers. Governance & Rewards: Users earn xCREDI tokens for governance and profit sharing.

By participating in Module X, Credefi users benefit from a secure and rewarding DeFi experience, bridging the gap between decentralized finance and traditional financial security mechanisms.