- 4 months ago
SmartCredit.io is an AI-powered self-custodial neobank that provides fixed-term, fixed-rate loans to borrowers and fixed income funds to lenders, along with fiat on/off ramp capabilities, without the risk of bank runs.
Category
📚
LearningTranscript
00:00what's up guys welcome back to the channel in today's video we'll be looking at smart
00:05credit which is an ai powered self-custodial neobank that provides a fixed term and fixed rate
00:13loans to borrowers and also fixed income funds to lenders along with a fiat on and off ramp
00:21and this is all done without the risk of a bank run so smart credit is effectively a decentralized
00:29global peer-to-peer lending marketplace that facilitates direct connections between lenders and
00:35borrowers eliminating the need for intermediaries and suppliers supply lenders rather supply their
00:42funds while our borrowers access these funds on a worldwide platform so today we'll be covering what
00:49smart credit is all about what some of the platform features are how to actually get started on the
00:55platform will also cover credit lines and fixed income funds fixed term and fixed interest rates
01:01as well as collateral utilization and position monitoring through their own system i'll also
01:08talk about liquidations that have no bank run risk like what you have on markets like ave and compound
01:16which i have spoken extensively about before but i'll also talk about what the state of smart credit
01:23uh is is in regards to uh the regulations that we have currently as well as uh looking at what a
01:31lot of people would be interested in which is the smart credit utility token itself also the awards
01:37program and also we'll talk about how you can stake smart credit so stay tuned to the end of the video
01:45make sure you like and you subscribe and also leave a comment and don't forget to check out the links
01:51in the description let's get started with that smart credit okay guys so let's look into some of the
01:58basics so uh the central autonomous platform ltd a bvi company actually operates the platform smart
02:07credit.io the leadership team includes co-founders martin plume and tamo plume both cfas or chartered
02:16financial analyst uh who actually have 10 years of experience as a vice president at credit swiss
02:22uh zurich and switzerland so the platform features for smart credit include a fixed term fixed interest
02:30rate collateralized loans for borrowers also you have personal fixed income funds for lenders you also
02:38have efficient uh collateral utilization and this is through the positions monitoring system ai driven
02:47predictive crypto fraud scores accessible free as well on smart trust.io you also have
02:56ai driven continuous transaction monitoring for wallet exchanges payment processes and this is all suitable
03:05for all crypto service providers and is also accessible via smart trust.io they have a fiat on and off ramp
03:14and ai api and borrowing land sdk integrations for other wallets and other platforms also they have
03:23staking and rewards for users so that's in a nutshell some of the features that you know you will find with
03:30smart credit so smart credit.io actually does emphasize offering self-custodial solutions that are actually
03:38compliant with regulations and unlike our vein compound in our other money market based lending
03:46systems smart credit.io does not face the risk of a bank run the vision of smart credit is to provide
03:53all financial services that traditional banks offer while maintaining a self-custodial approach so to get
04:00started on the platform is very simple straightforward simply launch the app and uh you'll be able to
04:08get started uh but i just want to do is uh cover credit lines and fixed income funds pretty quickly so
04:14on smartcredit.io lenders establish their personal d5 fixed income funds by specifying their desired
04:22investment types and settling their investment rules so lenders can opt for short-term lending strategies
04:28which are yielding low interest and also some long-term lending strategies that do yield higher interest
04:35they can allocate portions of their portfolio to short-term and or long-term investment as they see it fit so
04:44borrowers on the other hand can outline their collateralized loan requirements within credit lines
04:50the specific collateral ratio is influenced by the collateral's asset volatility loan term the borrower's
04:58trust score as well and you have predefined interest rate curves that are put in place with the exact
05:05interest rate depending on the underlying asset loan term and also the trust scores smart credit.io
05:13automatically matches borrower's loan request with lenders fixed income funds in the background so
05:20when you talk about these credit lines the uh they pretty much resemble traditional finance uh in terms
05:28of how these lines of credit work borrowers collateralize their credit lines and can repeatedly
05:33borrow against their collateral for each loan the borrower specifies the borrowing asset which is one of
05:40the fixed income funds assets available for borrowing the actual collateral asset for the loan the loan
05:47term the specific collateral ratio ratio for the loan determined by the loan term the borrowed asset
05:53collateral asset and also the borrower's trust score you also have the precise interest rate for the loan
05:59influenced by the loan term a borrowed asset and the borrower's trust score and these are all calculated
06:07automatically so during the first loan the system creates a credit line in the background for
06:12subsequent loans the credit line is utilized and a borrower can have various collateral types within
06:19a single credit line and multiple loans via their credit line as well so if a loan is liquidated the
06:25remaining focus on the funds are transferred to the borrower's credit line so borrowers are able to
06:32repeatedly borrow against an uh an allocated collateral in the credit line they can withdraw an uh unallocated
06:39collateral that is collateral not used for active loans and they can do this at any time they can
06:45also enhance the collateral ratio of loans or that are active and also add more collateral assets to their
06:53credit line borrowers must pay gas if for the following transactions that is the first loan which
07:00creates the credit line depositing collateral on the platform as well which is another thing
07:06and as far as repaying the loan if a borrower already has uh sort of collateral in the credit
07:12line uh they can create new loan requests without paying gas in this case gas is only paid when repaying
07:19the loan resulting in significant gas savings for the borrower smart credit also does not high
07:25hypothecate collateral so the collateral remains locked in credit lines and it's actually considered out
07:31of circulation there are four types of credit types erc to erc20 borrowing so that's borrowing erc20
07:40assets against erc20 collateral erc20 eth borrowing so that's borrowing erc20 assets against eth collateral
07:50then you've got if erc20 borrowing it against erc20 collateral then you have borrowing eth against
07:58eth and uh this is for those who wish to do that so a credit line is established with the initial
08:06borrowing transaction it's actually used in subsequent borrowing transactions as well the asset within the
08:12credit line can be reused continuously similar to a collateralized line of credit in traditional finance
08:18so fixed term and fixed interest rates is another thing that we have to talk about today so unlike
08:24most boring lending platforms in d5 that offer variable rates variable loan terms smart credit.io to the real
08:32economy is trying to provide borrowers with fixed interest rates and fixed loan terms why are fixed rates
08:41important for borrowers you might want to know well predictability is very crucial in any economy it allows
08:48borrowers to know their capital costs also their liability values in advance so if you talk about
08:54why fixed loan terms are necessary for borrowers as well this means that borrowers can anticipate
09:00their financial obligations beforehand and they can actually use their collateral more efficiently as
09:05far as these fixed income funds lenders can create their personal fixed income funds and deposit
09:10assets into them the platform then matches the fif borrowers credit lines lenders lend through their fif
09:18and deciding on the maturity ratios for their asset investments and this enables lenders to combine
09:25various loan maturities and actually generate their desired loan portfolios so this is all well and good but
09:33like i said they do also have this efficient collateral utilization and positions monitoring system which
09:41features a positions monitoring system allowing borrowers to pretty much receive telegram notifications
09:48if the liquidation probability increases this automated function is accessible to all users position
09:55monitoring promotes efficient collateral usage of course liquidations another thing that we have to really
10:01touch on smart credit does oversee loans and initiates liquidation if a borrower does fail to pay if
10:07their collateral value does drop far so borrower's collateral assets in the smart contracts are
10:13actually safeguarded by oracles ensuring that the liquidation process commences only after a oracle
10:19verification unlike uh competitors who i do love quite a lot uh ave compounds also maker smart credit
10:27does not profit from liquidation so any remaining collateral post liquidation is actually returned to the
10:33borrower competing platforms do generate revenue by liquidating under collateralized borrowers selling
10:39their collateral at a discount the residual collateral value becomes profit for the liquidator bots often
10:45hosted by their respective platforms some instances liquidations revenue account for up to 50 percent of
10:51a platform's total earnings which sounds like they would be incentivized to help you liquidated so if collateral is
10:58insufficient to cover a borrower's obligation the loss provision fund compensates the loss of the lender for that difference
11:06so there are no bank runs so many d5 platforms do obviously suffer from this due to unmatched maturities
11:13in contrast smart credit.io matches borrowers and lenders maturities functioning like a traditional bank with that custodial
11:21concerns all bank run risks okay so from a regulatory perspective since i did say i'll touch on this
11:28uh briefly smart credit does operate as a purely peer-to-peer platform without pulling clients assets
11:34and as a result it does not need to register within uh it doesn't need doesn't need to register as a security
11:40competitors that have uh implemented peer-to-poor uh pool peer or peer-to-pool-to-peer business models rather
11:48must register as securities which they may never actually achieve due to these uh you know uh
11:54complications of having to go through those uh um verifications and uh uh getting approval so smart
12:02credit.io has implemented transaction monitoring of course so alone uh loans are also managed on the
12:09platform where you have uh uh smart credit.io pairing borrows loans requests with lenders fixed income
12:15funds through uh three component system where you've got borrowers establishing collateralized loan
12:21requests using credit lines you've got lenders creating fixed income funds deposit assets you've
12:27got smart credit serving as a matching engine connecting borrowers and loan requests with lenders with
12:33fixed income funds so interest payments accumulate in the frs like i said continually matching new loans
12:40with a new request so smart credit is a an interesting token as well you know the token utility is
12:48something we should talk about uh you can use it for collateral for borrowing you can use it to stake
12:53you can improve it to improve your you can use it to improve your credit scoring to purchase smart
12:58credit tokens it's quite easy using your web3 wallet such as metamask you can purchase this and through
13:04decentralized exchanges so you can just connect your wallet to metamask for example you can add the
13:10token smart cd so you can make sure when your uh tokens do get credited you can view them easily
13:18make sure you add the contract address you usually can pull this off on coin get or coin market cap
13:24just check out smart credit go to the contract address on there import that to your metamask and
13:30sign the signature and once your wallet is connected to smart credit smart contracts you can then proceed to
13:36swap for another asset for example here we swap some ethereum for smart credit as you can see we paid a
13:43little bit of gas and then we submitted that transaction and you can see it cleared the swap was completed
13:50as far as the rewards program they do have staking rewards for holders 15 percent annualized inflation
13:57225 000 tokens annually for staking rewards allocated 4 327 tokens weekly uh allocated to
14:06staking rewards bonus rewards again another fantastic thing for borrowers and lenders alike
14:1210 annualized inflation 150k tokens annually allocated for bonus rewards 2885 tokens weekly for bonus rewards
14:22as far as far as affiliates and marketing rewards six percent annualized inflation 90 000 tokens annually
14:29make sure you lose you check out the link in the description use my link to you know get started
14:34with smart credit if you do wish to do that so i can get some of that affiliate kickback as well for
14:40giving you this alpha guys so you can stay your rewards provided obviously to smart credit holders will
14:46lend smart credit via staking frfs and earning rewards in return smart credit like i said distributes
14:54tokens weekly to stakers go to the app v2.smartcredit.io you check out the dashboard launch the app begin
15:03staking you'll give the app permission to interact with your wallet sign that contract create the staking
15:09contract you'll be required to pay a gas fee for that initial setup and contract interaction choose the
15:14amount of smart credit tokens that you wish to stake for example here we stake uh just over 100 tokens
15:21pay the gas fees that are due to uh that process once that's processed your tokens will be staked
15:29and you can see that the staking rules are pretty easy and simple as well staking is executed via
15:35smart credit to rl fixed income funds with each staker required to create a unique staking
15:40fif to receive these rewards stakers must deposit for minimum 90 days you can increase your staking
15:48position at any time by depositing additional smart credits staking for less than 90 days actually
15:54results in forfeiture of your rewards stakers can initiate a request withdrawal transaction to cancel
16:02staking triggering a five-day cooldown period you can withdraw any amount within the five-day cooldown
16:08commencement period and remaining tokens are still eligible for staking rewards if deposited for at
16:14least 90 days users can claim rewards or utilize guests a gasless restaking to restate their staking
16:22rewards which is fantastic gasless restaking of rewards uh is uh kind of nice when you're doing recurring
16:31stakes days so gasless restaking is also a distinct feature allowing you to claim rewards deposit them
16:37without paying any gas fees again this is something that i feel like you guys should check out smart
16:43credit.io is the main website check out the link in the description for you to get started if you want
16:49to don't forget to check out the links in the description to some of my favorite decentralized
16:53exchanges gmx gns you also can use apex protocols seen futures etc all in the description if you go to our
17:02main site on our ecosystems tab host of recommendations of some of the best platforms
17:07we do price comparisons in terms of the rates that you're offered in terms of our transaction fees
17:12for trading etc on our main site just go to exchanges if you want to know more about wallets compare which
17:18kind of wallets you like custodial non-custodial web wallets mobile wallets make sure you go to our
17:24main site if you want to know more about defy applications nft marketplaces all of that good
17:30stuff make sure you head on over to our resources page and again guys make sure you give us a
17:36thumbs up subscribe to the channel and also make sure you join our telegram and our discord server
17:42if you want to know more about what our real world asset tokenization on the blockchain check out my book
17:47tokenized trillions and also my other book blockchain applied it will give you a real insight into different
17:53uh use cases for distributed ledges across numerous industries like share subscribe turn on the
17:59notifications i will be seeing you guys in the next video peace and love
Recommended
0:21
|
Up next
0:40
0:28
0:12
4:17
5:49
10:27
4:11
4:51
4:49
2:56
5:03
Be the first to comment