Decentralized global peer-to-peer lending marketplace SmartCredit.io connects lenders and borrowers without intermediaries. Lenders offer their funds, and borrowers borrow funds on the world market.
What is special about SmartCredit.io?
SmartCredit.io — a peer-to-peer marketplace for borrowers and lenders.
It works like this:
| 1 | Borrowers define their loan requests with credit lines. |
| 2 | Lenders define their personal fixed income funds. |
| 3 | SmartCredit.io matches requests from borrowers and lenders. |
Most borrowing/lending platforms offer borrowers loans with variable interest rates and variable tenors. SmartCredit.io focuses on the real economy - it offers fixed interest rates and fixed terms for borrowers. SmartCredit.io focuses on:
- Fixed-term/fixed-rate loans for borrowers with lines of credit.
- DeFI fixed income funds for lenders – lenders determine what maturities they want to invest in.
Lenders define their personal DeFi fixed income funds in SmartCredit.io. They determine which loans they want to invest in and describe their investment rules. Each lender can choose whether they prefer short-term lending strategies (lower interest rates) or long-term lending strategies (higher interest rates). Each lender can determine how much of their portfolio to invest in the short and/or long term.
Borrowers define their secured loan requests within the credit lines. The specific collateral ratio depends on the volatility of the collateral asset, the loan term and the borrower's confidence rating. Interest rate curves are predetermined. The specific interest rate depends on the underlying asset, loan term and trust rating.
SmartCredit.io tracks the loan and if the borrower fails to pay or the borrower's collateral drops too much, the loan is liquidated. The borrower’s collateral assets in smart contracts are protected by oracles – the liquidation process starts only after the oracle confirms the liquidation.
Other features
SmartCredit.io never makes money from liquidations - what is left of the liquidation is returned to the borrower. This is one of the key differences from competitors (Aave, Compound and Maker). Competitors profit from the liquidation of an undercollateralized borrower because the collateral is sold at a discount and the remainder of the value of the collateral becomes profit for the liquidation bots. Most of these bots are hosted on their respective platforms, and liquidation proceeds go into platform revenue; in some months, even 50% of the income of the respective platforms.