Credefi aims to liberalize the banking sector by becoming the decentralized financial gateway that connects lenders in the crypto space to real-world Small and Medium Enterprise(SME) borrowers. Decentralized Finance(DeFi) remains to be one of the most significant breakthroughs in blockchain recently, but it is still plagued by the volatility of crypto assets. Yield generated in DeFi is calculated from Total Value Locked. This makes it highly correlated to market sentiment. Returns are healthy in the bull market but run dry in a declining market. Historically, SMEs are also underserved by the traditional banking sector and are forced to borrow at high interest rates. This has forced SMEs to seek alternative funding sources like crowdfunding and peer-to-peer lending. By providing creditworthy SME borrowers with reliable lenders, Credefi is able to serve the needs of both communities.
The platform will be deployed in three stages. The first stage will allow passive lending of stable coins to credit portfolios of varying risk and return profile based on individual preference. Lenders will also have access to credit score information and risk assessment to make an informed decision in their investment. In the second stage, Credefi will enable direct peer-to-peer finance by connecting interested parties. In the third and final stage, Credefi will add trade finance to its list of service offerings. This not only enables lenders and borrowers to to engage in cross-border credit deals but also underwrite Letters of Credit and factoring services.
Lenders on Credefi will be protected by a three layer security system that includes a proprietary in-house credit scoring system, crypto/real-world asset collateralization and Module X, Crediti’s security module. The platform has also formed a strategic partnership with an EU licensed financial institution to manage real-world assets as well as Lithium finance to serve as an oracle for on-chain validation of asset value.
Credefi addresses key challenges in traditional finance and presents a decentralized solution that benefits both lenders and borrowers. This is very much in-line with our goal as a project to bridge the gap between TradFi and DeFi. Our team is excited about this collaboration and look forward to bringing decentralized banking and financial services to individual and commercial GeroWallet users.
Our users are our motivation. We are committed to building a dynamic environment for the advancement of blockchain by designing innovative, user-friendly tools for the DeFi community. Our promise is to continuously strive to provide accessibility to all through an intuitive user experience.
Credefi connects crypto lenders to real-world SME borrowers in a symbiotic manner that benefits both parties. The team is composed of experts with a robust background in finance, management and technology. The platform will support portfolio lending, project based peer-to-peer lending and trade finance which will be deployed in three stages.
Notable partners and backers include: Experian, Lithium Finance, Reef Finance, Polygon, PhotoChromic and Banter Capital.