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CREDI Utility

2023-04-30   |   by Carl Cohen   |   1485

It's time to talk about CREDI Utility

The main utilities functions of $CREDI are to act as an additional security layer for the loans  issued on the platform and to serve as a fee discount yield/boost token on the platform.  Also, $CREDI is used to mint $xCREDI, by deposits into ModuleX and burn mechanism after the 6 months period.

1. Fee discount yield/boost:

Via $CREDI, users on the platform will be able to: 
- Boost their yield (if they are lenders), by reducing the margin, which Credefi collects on each loan by up to 33%
- Reduce their fees (if they are borrowers), by reducing the origination fee, which Credefi Collects by up to 33%

2. Security ModuleX:

Any $CREDI, which is available in the module can be used by the Credefi platform to remunerate lending liquidity providers in case a loan on the platform goes into default.
Also, when $CREDI is deposited in ModuleX, it's going to be burnt after 6 months and xCREDI will minted.

To support our loyal community, we opened the security module for a limited time after launching our tokens, allowing members to receive $xCREDI tokens at a 1:1 rate, and after the first round, 3,713,120.94 $CREDI have been burnt and the same amount of xCREDI has been minted.
For example, if on the second round 10 million $CREDI are deposited in ModuleX, this means that the same amount of $CREDI will be burnt.

Additionally, with the release of our Credefi 2.0 platform, we have added a new use for $CREDI coming this Autumn.

3. $CREDI can be used as a means to secure Collateral Protection Insurance.

This insurance policy protects the lender in the event of a borrower default and can be structured based on different levels or tiers. Higher tier policyholders would have priority in the reimbursement process in the case of a default.

4. You can raise your APY if you have $CREDI tokens available from 0.5% to 2%

You have the option the raise the APY on your stable coins by simply staking $CREDI on our platform.
There will be 3 levels, depending on the amount of $CREDI staked:

Common - 0.5%
Standard - 1%
Premium - 2%

Example: If you have $1000 deposited in the 20% APY portfolio and you have a Standard $CREDI stake for 1%, you will receive 21% APY.

That's not all, but everything with its time.

More info is coming soon!

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