Credefi AMA Summary Recap with Shin Chan Community
We held a live AMA with CEO, Ivo Grigorov from Credefi on 28th January 9:00 PM (UTC+8). Here’s the recap for those who missed it.
Introduction
Mika | Shin Chan: Before AMA start, can you introduce yourselves and the team background?
Ivo Grigorov: of course :)
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.
Mika | Shin Chan: can u tell the community what is Credefi in short?
Ivo Grigorov: sure thing
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.
Mika | Shin Chan: Do u have any upcoming news or events that the community need to keep an eye on?
Ivo Grigorov: Most definitely yes! We are having our official Stage 1 platform launch on the 31st of January (Monday). We will also hold a Community Call on the same day in Twitter Spaces. So everyone is welcome to join! We will talk everything Credefi and will answer all the questions the community might have!
Mika | Shin Chan:
#Blockchain #DeFi #CREDI #Credefi
🖐 Hello, Credefians!!
Credefi is in the news again.
Find out more about Our alliance with @Experian, one of the world’s leading consumer #credit reporting agencies, will not only make it easy to check & adjust Credefi’s scoring & but also enable open banking solutions for our customers.
Working with Experian, a company known all over the world, is definitely a huge milestone for Credefi
Learn more about our partnership👇
https://www.cointribune.com/en/analysis/global/credefi-announces-new-partnership-with-experian/
📢 Spread the word https://twitter.com/credefi_finance/status/1487035233346068486?s=20&t=01uPWyOKEZRyLG9dUNzrtA
Twitter Section Begins
Q1: Credefi resolves the key challenges that DeFi and TradFi are facing today. DeFi yields, evaporate in bear markets. DeFi borrowers are speculative and fickle and cannot satisfy DeFi lending supply. Those are a lot to problems, hoe can Credefi address and solve them all
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.
Q2: NFTs are making a big impact on DEFI, but you say that Credefi is coming to revolutionize the concept of NFTs and you comment on NDS (NFT Default Swap),could you tell us about this innovation of NFTs in your network,how they are used and what benefits it will bring to your users?
Ivo Grigorov: Great one! This is very interesting for everyone in the DeFi field
We have created a derivative instrument designed to even further secure your investments in our platform and create a secondary market for your asset backed lending. It is designed for all participants in our platform who wish to hedge their lending activity against credit defaults, hence allowing them to take riskier positions in both our portfolios or on an individual basis.
We call it NDS (NFT Default Swap).
The idea behind it is that people can wrap their LP tokens generated from investing in different portfolios on the platform and issue a unique NFT, which can recuperate their losses and also can be sold on a secondary market. We have a very detailed article on the topic, which explains everything about this revolutionary product here: https://medium.com/@credefi/credefi-employs-nft-technology-to-create-an-advanced-derivative-instrument-into-the-crypto-space-d341be9599c2
Q3: You’ll be establishing a three-layer security system for your platform lenders. Could you tell us more about Credefi’s security code and how it will keep us safe from external threats? What is it’s true level of security that we can acquire from it?
Ivo Grigorov: Let me explain
Our three-layer protection mechanism, providing maximum security to our lenders based on our:
1) in-house credit scoring backed by Experian — one of the Big Three credit-reporting agencies;
2) crypto and real-world assets collateral;
3) our Security Module (Module X)
- professional credit scoring of each borrower, validated by Experian and available for free to our users
Q4: In addition to collateralized loans, you have offered to give zero-collateral loans on a case-by-case basis under the P2P lending options. What is the objective of this option Zero Collateral loan, and what is its function?
Ivo Grigorov: Zero collateral loans will be offered only to already validated borrowers. It means that through time if the borrowers have been diligent with their obligations their scoring and risk assessment will indicate a diminishing collateral requirement when they apply to the platform for a loan.
This gives us an opportunity to offer an even higher range of service to the SMEs which have a proven track record on the platform.
Q5: Reading in a web article it mentions that the Credefi platform will be implemented in three stages: portfolio loans, peer loans and commercial financing, what is the function of these stages and what is the technological level, strategic development plan on
Ivo Grigorov: 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, Credefi 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.
Telegram Live AMA Begins
Q6: What are the functions and applications of the $CREDI and $xCREDI tokens in the ecosystem? Will there be a token burn, a cashback mechanism, and a staking program?
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. Users will be able to stake CREDI tokens in our ModuleX and mint our governance token xCREDI right after the launch.
Q7: Last year Credefi passed the Smart Contract audit audit from Armors Lab,
What audit results were provided by Armors lab?
Ivo Grigorov: Armors Lab is a leading provider of smart contract audit services with a very good reputation. You can find the full report here:
https://drive.google.com/drive/folders/1Y0Lo9gfJfowIimLGwBEAFUfeAZjtXuy6
Q8: You recently announced a major partnership with Experian. My concern is: how will this help #Credefi expand their client base while also influencing loan choices and drawing more #SMEs to the protocol and #DeFi? What effect will Experian have on Credefi? You recently announced a major partnership with Experian. My concern is: how will this help #Credefi expand their client base while also influencing loan choices and drawing more #SMEs to the protocol and #DeFi? What effect will Experian have on Credefi?
Ivo Grigorov: We are extremely happy to have been included in the article and to have participated in the Experian innovation week event! We urge everyone to go ahead and dive into the publications, where we have carried out a video interview and have been included in Experian’s report!
Check them out:
https://www.youtube.com/watch?v=TDtYzleMKzQ&ab_channel=ExperianBalkansandCentralandEasternEurope
Q9: Which jurisdictions and countries are you planning to launch Credefi initially in? Surely while trying to bridge the centralized finance to decentralized finance — there will be a lot of regulative challenges — so are you looking to expand in phases in different areas?
Ivo Grigorov: 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.
Q10: 🔵 I saw that “Testnet Credefi” is now Live. Can you tell us how we can help as Testnet testers? Is this test limited to a certain number of users or is it available to all? And Can Testnet testers suggest additional features & provide feedback? Also when does Mainnet Launch start? 🔵
Ivo Grigorov: As our community is our most important asset, so the Credefi Testnet was aimed to give early access to 100 community members, who have the opportunity to use and perform tests on the platform’s UI/UX before our official platform launch at the end of this month. They have received testnet tokens, which they are free to lend, borrow and stake in whichever way they wish. Their constant feedback is crucial for the smooth performance of the platform in future. All 100 participants will receive a special reward at the end of the testnet period.
The competition was opened to 100 qualifying participants only. This is to ensure we receive a steady and consistent flow of feedback from our most loyal supporters.
Our Mainnet will be live on the 31st of January (Monday)
Q11: I have a question..1
Credefi, has already completed $ 1.8 million private rounds on the Bulgarian startup. So what is the real relationship between DeFi and SME?
Credit portfolio loans are divided into 4 categories according to risk and return. So what do you say these will offer?
Ivo Grigorov: We are creating the opportunity for SME’s to gain access to smoother and easier loan receiving processes with better stability and transparency, introducing the real life economy to the decentralized world of DeFi
Q12: Will Credefi be suitable for crypto beginners as well as experienced crypto users? Will Credefi enable and assist SMEs to enter the field?
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.
Q13: I want to buy your token??
where can i buy your token right now?
Do you have IDO plan??
Where Credifi is Listed?
Ivo Grigorov: The $CREDI token is currently available on a Tier 1 CEX — KuCoin and also on both DEX’s — Pancakeswap and Uniswap
Q14: I read that Credefi are pioneers in connecting DeFi with SMEs, could you tell us about how the adoption has turned out? How have you educated these companies to know and take advantage of the benefits offered by Defi and especially Credefi?
Ivo Grigorov: We have already been on the road, talking both to individual companies and to business associations throughout Europe, trying to get the message across that De-Fi is the future of finance and Credefi makes that future happen NOW. Thankfully, entrepreneurs and business owners are smart and forward-looking and most of them have embraced the opportunity to get De-Fi funding.
Make sure you come and join our community call happening on Monday the 31st of January, where we will be discussing all things Credefi and our official product launch! See you there!
Q15: Since Credefi works on a decentralized platform where they allow users to lend and borrow money with an interest based on the users individual risk appetite, can you please tell us what risks you are to avoid for borrowers that can’t pay for their loans? Do you require other assets as collaterals in case that the borrower can’t pay their debts? What are those?
Ivo Grigorov: We do require underlying collaterals, which have been carefully weighed in, so that we ensure security in the case of loan default. We are working with a licensed EU financial institution, which will carry out the collateral liquidation. Together with our NFT Default Swap (NDS), we are adding yet another layer of security and diversity on loan repayment :)
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