Altcoin Alerts x Credefi AMA Recap
Altcoin Alerts Community had an Ask Me Anything session with Ivo Grigorov (CEO) from Credefi on 08th Dec 2021
Segment 1: Credefi Introduction & Q/A with Altcoin Alerts Team
Altcoin Alerts: Hey Ivo Grigorov
Welcome to Altcoin Alerts Community
Ivo Grigorov: Hi everyone it’s a pleasure to be here
Altcoin Alerts: Glad to have you
How are you doing Ivo Grigorov
Ivo Grigorov: Doing well really excited about our listing tomorrow on KuCoin
Altcoin Alerts: sounds good
Let us start with introduction.
Can you please introduce yourself & your journey in the cryptocurrency field? Also, please introduce Credefi.
Ivo Grigorov: My name is Ivo Grigorov and I am the CEO of Credefi. Credefi’s team has 40+ years of experience in finance — from private equity funds to commercial and central banks, and we are crypto believers as well, being in the space since 2016. We have been working in leading roles for several commercial banks, private equity funds, asset management institutions and the Central Bank of Bulgaria. In our experience we have seen time and time again the great deficiencies of traditional finance, while witnessing the tremendous growth of DeFi and the opportunities it opens and that’s how the vision of Credefi was born.
We believe DeFi is the future of banking and are quite frustrated that so far it has very little connection with and impact on the real economy, it’s a closed universe. We aim to change that and open a brand-new niche in DeFi by enabling stablecoins to flow to real businesses and earn a fixed and non-crypto-related yield. At the same time we aim to become a gateway to DeFi for SMEs and render obsolete the outdated, bureaucratic and overregulated banking services SMEs now have to cope with, replacing them with quick, flexible and user-friendly funding solution.
Credefi is a first mover in the DeFi space connecting crypto lenders & SME borrowers from the real economy. Our platform enables decentralized and secured lending to portfolios of businesses, protecting lenders while providing them fixed APY that is uncorrelated with crypto markets’ volatility. Credefi is resolving some of the key challenges in DeFi and TradFi: -On the DeFi side, DeFi yields are inconsistent, fragile, and evaporate in bear markets and the aftermath of DeFi Winter and the market crash in May ’21 are a clear proof of that. We see that speculative borrowers cannot satisfy DeFi lending supply. -On the TradFi side, small and medium enterprises are historically underserved by traditional banks and are borrowing at consistently high interest. There are not enough lenders to satisfy SME borrowing demand, pushing SMEs to alternative lending solutions such as peer-to-peer and crowdfunding which are billion-dollar industries in the US and EU.
Altcoin Alerts: Amazing!
Credefi recently completed its IDO on Cardstarter & announced CREDI token listing on Kucoin. Please share some more details of Kucoin listing, when trading will start and Kucoin Listing giveaway?
Ivo Grigorov: Regarding our listing on KuCoin — it is one of the top 5 largest crypto exchanges in the world. Trading volumes are in the billions of dollars on the platform which has developed a pleasant user experience. KuCoin allows access to very promising tokens that are difficult to find on other competing exchanges.
From 10 AM (UTC) on December 9 it will be possible to trade the CREDI token associated with the Credefi project directly on KuCoin. The available trading pair will be CREDI/USDT. Deposits are possible since December 7th, trading will start on December 9th and withdrawals will be possible from Friday December 10th.
The giveaway campaign is currently ongoing and we encourage everyone to go ahead and participate through both their website and mobile app!
Altcoin Alerts: That’s exciting
Please tell us about your IDO experience. Also, share major milestone / announcements till date.
Ivo Grigorov: On November 9th Credefi successfully completed its IDO on the Cardstarter platform, an amount of $420 K was raised during this IDO which represented one of the highest number of participants and highest raises completed on Cardstarter! Further more we managed to strike several very strategic partnerships but most important of all we managed to do is the preparation of the listing with KuCoin.
Altcoin Alerts: Impressive.
Credefi have some interesting upcoming products like Portfolio Lending, Project-based P2P lending, Trade finance. When are we expecting these to go live? Please share a detailed roadmap.
Ivo Grigorov: Next step for us is that we will run our public testnet and bug bounty program and we aim to do the guarded launch of Stage I of our platform (portfolio lending) in Q1 2022. In 2022 we will also roll out Stage II and Stage III of the platform — peer-to-peer lending and trade finance services, while also expanding beyond the European Union to markets in East Asia, Latin America, and the CIS region. We also plan to be cross-chain interoperable, so integrations with leading blockchains like Cardano and Solana are in the works.
Segment 2: Twitter Questions
Q1. According to your website, you have DeFi and NFT investment packages. Can list and explain the available investment packages that are available? Are the investment packages available for every user? What is the minimum required for an investor to invest in any of your investment?
Ivo Grigorov: We have designed the platform to be suitable for both beginners and more advanced users. We would like to eventually become a gateway for SMEs for crypto lending, so we had to have in mind users, which do not have previous experience in the crypto sphere.
There is no minimum amount for investment, it is upto the user’s preference!
Stage 1: Credit portfolios that are divided into 4 categories depending on the R of the underlying projects. Each portfolio will provide fixed APYs to lenders and LPs.
Stage 2: Peer-to-peer lending incentivizing lenders and borrowers to negotiate directly the terms and conditions of every transaction. Still, Credifi will do a credit scoring of each borrower to ensure stability of the protocol and mitigate the default rates.
Stage 3: Trade finance in the form of underwriting letters of credit and credit lines for cross-border and domestic transactions.
Q2. One of Credefi’s greatest features is P2P lending, But there are many other projects in market that offers the same services so can you tell us what makes Credefi’s P2P lending unique among these existing projects?
Ivo Grigorov: Credefi is a new breed of De-Fi protocol tapping into the trillion dollars market of real world companies and assets. We do that in a structured and disciplined way, harnessing the best from both the Trad-fi and De-Fi domains. We have a battletested in-house credit scoring allowing the lending to proven and credible borrowers while protecting our lenders and LPs, and providing them fixed and stable APY.
We are different from our peers by performing our own credit scoring in-house and accepting real-world assets collateral that will be administered and managed by a licensed financial institution.
We also emphasize on the security for lenders as our main priority and thus, we’ll kick off our operations using guarded launch, accepting initially borrowers primarily from the European union with the aim to limit the risk of default.
After our operations are well established in the EU, we’ll be expanding to Asia and Africa and start introducing loans with low to non-collateral requirements.
Q3. How would the lenders know which risk range is suitable for their risk tolerance? Do you have data and information on your platform’s risk assessment for the lenders?
Ivo Grigorov: We do want to provide transparency, security and also serve as a gateway for real-world businesses to the De-Fi world, while providing stable and fixed APYs, which are uncorrelated to the crypto market volatility. De-Fi yields are inconsistent, fragile, and evaporate in bear markets. De-Fi borrowers are speculative and fickle and cannot satisfy De-Fi lending supply. While SMEs need reliable lending sources, De-Fi needs reliable creditworthy borrowers, so Credefi brings them together in a win-win.
In order to achieve this bridge between Trad-Fi and De-Fi, we are providing lenders with the toolset needed to be able to take an informed decision, as well as being extremely secure due to our implementation of a 3-layer security mechanism. Our security mechanism consists of credit risk assessment models (verified by Experian), real-world collateral assets and our Module X.
Segment 3: Credefi Q/A with Community
Q1. AUDIT plays an IMPORTANT role in enhancing the stability of any PROJECT. You have a CERTIFICATE of AUDIT. Or are you working on an AUDIT your project to make it more secure and reliable?
Ivo Grigorov: You shouldn’t have any concerns about the protocol’s security as our team of developers has vast experience in the field and it has been working with some of the leading protocols and blockchains as AAVE and Avalanche, as well as traditional tech companies as Booking.com. We’ve also underwent a successful audit by a leading security firm in the space — Armors Labs.
Q2. NFT is really a hot topic in the cryptocurrency market now. So how is your project planning to develop Nft then how is your project planning to integrate it with DeFi?
Ivo Grigorov: Absolutely, this is something in the making for Credefi. We should not forget that NFT doesn’t stand for simple jpegs or artwork. It’s a new vertical in crypto that is revolutionizing the industry just like stablecoins did. So with NFTs we have multiple ways to optimize the protocol’s operations and also release new product lines that are currently in the making.
Q3. Does your great project support staking program? If yes. how is your stake system work, what is the requirement for user if they want to stake in your platform?
Ivo Grigorov: Yes definitely! Our tokenomics is designed and inspired by the latest trends and developments in the space. We have implemented a 2-token economy model, which secures and stabilizes the platform, while increasing APY for our stakers and token holders. Through staking our native token CREDI in our ModuleX, you will be able to receive higher APY as well as mint our governance token xCREDI. Additionally, we have implemented a buyback and burn mechanism of xCREDI, in order to return part of the revenue generated by the protocol. Users will be able to stake CREDI tokens in our ModuleX and mint our governance token xCREDI right after the launch. Early stakers will enjoy the best conversion rate between CREDI and xCREDI, as well as increased APY and additional rewards as soon as the platform starts operations.
To celebrate Crefefi’s launch and listing on KuCoin, we’re introducing a preferential staking program for our early CREDI holders allowing them to book a spot on the CREDI — xCREDI bonding curve and mint xCREDI at 1:1 rate to CREDI. It’s once in a lifetime opportunity and we welcome all Credefi enthusiasts to dive into the details available in the article here: https://medium.com/@credefi/discover-credefi-series-the-credi-and-xcredi-tokens-how-do-they-work-e31fe425b529
Q4. Are you planning to burn tokens to increase token value and attract investors to invest? So, your token will be more profitable to hold?
Ivo Grigorov: Our tokenomics is designed and inspired by the latest trends and developments in the space. We have implemented a 2-token economy model, which secures and stabilizes the platform, while increasing APY for our stakers and token holders. Through staking our native token CREDI in our ModuleX, you will be able to receive higher APY as well as mint our governance token xCREDI. Additionally, we have implemented a buyback and burn mechanism of xCREDI, in order to return part of the revenue generated by the protocol.
Q5. What are the competitive advantage of $CREDI and benefits of investors in the long term?
Ivo Grigorov: Credefi is a unique protocol in many ways. We are pioneers in connecting DeFi with real-world businesses — a challenging task that very few projects have set to achieve so far. What makes us confident we’ll be successful in our mission is the lending mechanism we have developed, which makes our platform secure for lenders and easy-to-use and accessible for SMEs.
More specifically the acceptance of real-world collateral, its proper evaluation and administration in a user-friendly manner for SMEs allow those companies to easily join our platform and enter the DeFi world without fear. On the other hand, for lenders we provide a unique diversification opportunity — earning fixed yields not correlated to the crypto market volatility.
Q6. What are the ways for your project to generate revenue in the long run? What is the progress of business development and what are some of your commercial partnerships?
Ivo Grigorov: We believe one of the goals of DeFi is to cut the middleman as much as possible and allow money to flow seamlessly and without friction. That’s why we do not do arbitrage between lenders and borrowers and do not have an interest spread — we are not a bank after all!
Also, we do not leverage our lenders’ capital by staking it on other platforms, etc. — funds go straight to SMEs and lenders have full transparency on where their money is deployed and what projects and companies they are funding.
Of course the platform has to earn revenue to keep the lights on and we do so by charging borrowers a fee when they obtain a loan — this is our only source of revenue.
Credefi Useful Links:
Telegram Group: https://t.me/credefi
Telegram Channel: https://t.me/credefi_news