Altcoin Alerts x Credefi AMA Recap

Altcoin Alerts Community had an Ask Me Anything session with Ivo Grigorov (CEO & Founder) from Credefi on 10th Nov 2021

Segment 1: Credefi Introduction & Q/A with Altcoin Alerts Team

Altcoin Alerts: HELLO Ivo Grigorov
Most Welcome to Altcoin Alerts Community

Ivo Grigorov: Hi it is a pleasure to be here

Altcoin Alerts: Yeah! Nice to have you here
How is it going?

Ivo Grigorov: Well really good yesterday we successfully completed our IDO on Cardstarter and we are currently preparing for our CEX listing

Altcoin Alerts: That’s good
Let us start with introduction.
Can you please introduce yourself & your journey in the cryptocurrency field? Also, please introduce Credefi.

Ivo Grigorov: I have always been fascinated by the art of banking and how the free flow of money helps companies grow their business. I studied at one of the best schools and universities in Switzerland and the UK in the field of banking and I’ve been in the financial industry ever since. In 2017 I started trading purely as speculation and just learning about the space. I was doing lots of fundamental research as part of my trading strategy and soon entered into the rabbit hole of blockchain and the way it can revolutionize the financial markets.
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: It’s going to help many
Credefi IDO held on CardStarter on 8 Nov, Please tell more about the IDO and listing. For all who are interested in Credefi please tell about your partners, investors, tokenomics etc.

Ivo Grigorov: Well we have successfully completed our IDO and we are working on our listing. Recently we have concluded our partnership with Experian, which is a first for the blockchain world. Experian is one of the Big Three credit scoring agencies in the world.
Previously we have concluded partnerships with Polygon and two oracles — Lithium Finance and SupraOracles, who will help us get on-chain as much data from the real word as possible.
Credefi has concluded a $1.8M private round led by Marshland Capital and Moonrock Capital, with key investors including Titans Ventures, Varys Capital, ZBS Capital, X21 Digital, Magnus Capital, Skynet Trading, LucidBlue Ventures, Black Edge Capital, AU21 Capital, Peech Capital, Metrix Capital, Maven Capital, Banter Capital, RR2 Capital; and angel investors like Heslin Kim.

Altcoin Alerts: Impressive
When are we expecting token staking, public test and official launch of Credefi platform? Please share your roadmap and future plans.

Ivo Grigorov: 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 December. In 2022 we will 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.
This is just part of what we are planning for 2022, we don’t want to spoil the surprises we have prepared for you as Credefi really develops and expands a new segment in DeFi.

Altcoin Alerts: Looks solid
Credefi platform will have some of the awesome features like Portfolio Lending, Project base P2P lending etc. Please share all the features and products Credefi is coming up with.

Ivo Grigorov: In Stage I of the platform we will have four portfolios of loans, ranging from low-risk with ~10% APY to high-risk with ~40% APY. In Stage II — peer-to-peer lending, lenders and borrowers will be free to set whatever loan terms they agree upon, but they will be able to see the credit scoring of the borrower performed by Credefi as a reference.

The key advantages to lenders are:

  • fixed yields thar are very weakly correlated to the crypto market and will not evaporate in bear markets, providing safe haven to stablecoin lenders.
  • full transparency regarding portfolios, loans and borrowers — our users will be able to see detailed information about each project in each portfolio, in contrast to current DeFi solutions which are “black boxes” in reality.
  • our three-layer protection mechanism, providing maximum security to our lenders, based on our
  • 1) in-house credit scoring backed by Experian
  • 2) crypto and real-world collateral
  • 3) our Security Module (Module X)
  • professional credit scoring of each borrower, validated by Experian and available for free to our users.

Altcoin Alerts: Awesome!

Segment 2: Twitter Questions

Q1. You highlight the SMEs or the Small & Medium enterprise Borrowers. Now, How can you make a Positive impact in these Growing SMEs Ecosystem?
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.

Q2. One of Credefi’s greatest advantage is P2P lending. There are many projects that offers the same services so can you tell us what makes Credefi’s P2P lending unique among these existing projects? What distinctive features will your P2P lending characterize?
Ivo Grigorov: Credefi is a new breed of defi 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 Tradfi and Defi domains. We have a battletested in-house credit scoring allowing the lending to proven and credible borrowers while protecting our lenders and liquidity providers, 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. Credefi has structured its native platform CREDI token to be both a governance and a reward generation token. How does the CREDI holder make a profit from having the token? In what type of governance does the CREDI holder participate? Requirements?
Ivo Grigorov: Our tokenomics is designed and inspired by the industry leaders like AAVE and SUSHI. 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 utility token CREDI in Module X, users 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 to users.
CREDI is our utility token that will be used to reward activity on the platform and act as an additional security layer by being staked in Module X. We will have a tiered structure for lenders and borrowers, whereby the more CREDI you hold (and stake), the better terms you will receive.
xCREDI is our governance token that will be minted only by staking and burning CREDI in Module X. xCREDI holders will be able to shape the path of Credefi in the future as we move towards a completely decentralized platform.

Segment 3: Credefi Q/A with Community

Q1. Are you planning to burn tokens to increase token value and attract investors to invest? So, what are your future plans with Tokens?
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.

Q2. STAKING is one of the STRATEGIES to ATTRACT USERS and HOLD Them and long term. Does your GREAT PROJECT have plan about to Staking?
Ivo Grigorov: Yes you 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.

Q3. Where Can I buy your tokens Now. What are Your Current Contracts, and how Can I buy Them and What Are The Benefits?
Ivo Grigorov: We have completed our IDO yesterday, and we are listing on both CEX and DEX in the coming days so please follow our announcements in order to see the listing detail and the opportunity to buy the tokens.

Q4. I know the Credefi project offers loans to all its network users. What assets should you pledge as collateral? What is the impact of this loan in today’s network finance revolution? And, How easy is it to access this credit or loan?
Ivo Grigorov: Our APYs are between 10% — 40% depending on the risk profile of the borrower. These are also the exact interest rates paid by borrowers, as we don’t have an interest spread.
We accept both crypto and real-world assets as collateral, which is key for onboarding SME borrowers as they don’t usually operate with crypto assets. Examples of the real-world assets SMEs can pledge as collateral are: land, real estate, receivables, cash deposits, shares, etc. — standard types of assets pledged as collateral when borrowing money.

Q5. As investors, we must be able to guarantee the security of the investments we want to make. Are Credefi already audited?
Ivo Grigorov: Our development team is constantly looking for and acting to resolve any potential vulnerabilities, however small they may be. We would also conduct a bug bounty program after IDO and implement all relevant findings to ensure maximum security of our platform when we launch.
We have recently passed a smart contract audit with Armors Lab — a leading provider of smart contract audit services with a very good reputation. We will be publishing the report soon — please follow our official channels for the latest updates.

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