Credefi opens the doors of DeFi for SMEs
With crypto transactions in Europe exceeding $ 1 billion in the past 12 months, the stage is set for the launch of Credefi – a European Fintech / DeFi protocol connecting crypto lenders with borrowers from small and medium-sized enterprises (SMEs) in the world. fiduciary economy.
Credefi’s strong team of finance professionals with over 40 years of leadership experience with commercial, investment and central banks, as well as private equity and asset management funds, aim disrupt lending to SMEs by allowing businesses to tap into the growing DeFi space. .
This is a complex and delicate business that very few projects have dared to tackle, but it has the potential to open up a whole new segment in DeFi and, more importantly, take DeFi to the next level. by actually connecting it to the real economy.
Until now, the DeFi space has been a universe in its own right – lending and borrowing crypto assets between crypto investors. At the same time, small and medium-sized businesses have historically been underserved by traditional banks and borrow at consistently high interest rates. They cannot use the funds stuck in DeFi because the system is too complex and difficult to grasp, with many “jumps” to be made, which scares companies. For example, standard DeFi borrowing requires crypto collateral that companies don’t have in the first place.
Credefi aims to change that.
Credefi is a pioneer in connecting these two worlds and enabling the flow of DeFi funds to the real economy. When Credefi’s vision comes true, crypto investors will have a reliable source of return on their stablecoins regardless of bull / bear market dynamics, while SMEs will benefit from fast, flexible and convenient borrowing and financial services. .
Credefi’s platform enables decentralized and secure lending to corporate portfolios, protecting lenders while providing them with a fixed APY that is not correlated with the volatility of the crypto markets and will not evaporate in a bear market. The platform will be deployed in three stages: Portfolio Lending, Peer-to-Peer Lending and Trade Finance, thus covering the main financial needs of SMEs.
The team has already assembled an impressive list of partners and supporters of their vision. This is the first blockchain project in partnership with Experian, one of the world’s three major credit rating agencies, which will help validate and calibrate Credefi’s proprietary risk assessment models. They also plan to bring as much off-chain data to the chain, in partnership with Lithium Finance and SupraOracles for this purpose. Polygon also supported the project with a Polygon Development Grant, helping integration with the Polygon chain reduce transaction costs for users.
Credefi has just completed a $ 1.8 million private investment led by Marshland Capital and Moonrock Capital, with key investors such as Varys Capital, X21 Digital, Magnus Capital, Skynet Trading, LucidBlue Ventures, Black Edge Capital, AU21 Capital, Peech Capital, Metrix Capital, Maven Capital, RR2 Capital; and angel investors like Heslin Kim.
The alpha version of the platform is currently being tested internally, and the public testnet is expected to be rolled out in November. The platform will have a reserved launch with exclusively European borrowers and will later expand to markets in East Asia, Latin America and the CIS region.
The project will perform an IDO with CardStarter on November 8. Community members will be able to start staking immediately and convert their CREDI tokens into xCREDI governance tokens which will be very limited in supply.
Credefi aims to become a gateway to DeFi for SMEs and to make obsolete the obsolete, bureaucratic and overregulated banking services that SMEs now face, replacing them with fast, flexible and user-friendly financing solutions. You can find out more about their platform, tokenomics and latest developments at credefi.finance, as well as Telegram and Twitter.