SMARTCREDIT Token Utility

Published in

SmartCredit.io & ChainAware.ai

3 min readOct 24, 2020

We have seen that the crypto-economy has limited fixed-income capabilities. We want to fill this gap with our project and add real value to the crypto users — to the borrowers, lenders, and passive investors.

Our project has minted 25'000'000 SMARTCREDIT tokens; 90% of them are time-locked — see here the details.

What will be the utility of SMARTCREDIT tokens?

Staking of SMARTCREDIT

Staking benefits long-term holders of SMARTCREDIT. It is implemented via the Fixed Income Funds lending in app.smartcredit.io:

Create your Fixed Income Fund (FIF) for SMARTCREDIT
Define the FIF investment rules so that you allocate a more significant part of funds into the bucket of 91–180 days
Deposit SMARTCREDIT into your FIF (i.e. lend your SMARTCREDIT to the borrowers)
Only the funds, which are locked for 90 days or more, are entitled to the staking rewards (i.e. rewards for lending SMARTCREDIT)

You can claim your staking rewards via the “Rewards” section.

Benefits for the Borrowers

The tokens will serve as collateral for borrowing on the SmartCredit.io platform. SmartCredit.io loans are collateralized — we are using the primary ERC20 tokens as collateral for the loans. SMARTCREDIT token is a crucial collateral token for the borrowers too.
Borrowers have multiple ways to improve their credit scores. One way is to open up more of their data. The other way is to stake SMARTCREDIT tokens.
The borrowers will be part of liquidity mining — the platform will reward borrowers with SMARTCREDIT tokens for their lending volume on our platform.
When borrowers are staking SMARTCREDIT tokens, then their platform loan origination fee is cut by half (borrowers have to pay less interest)

These benefits allow borrowers to monetize their SMARTCREDIT holdings.

Benefits for the Lenders

The lenders will be part of liquidity mining — they will be rewarded with tokens for their lending volume on our platform.
When lenders are staking SMARTCREDIT tokens, then the platform loan origination fee is cut by half (lenders will earn this fee).

These benefits allow the lenders to monetize their SMARTCREDIT holdings.

Benefits for the Integrators

Integration partners will be rewarded with SMARTCREDIT tokens based on the loan origination volume on their platforms, too. This rewarding mechanism enables alignment of the users, B2B partner, and SmartCredit.io platform needs.
Integration partners will earn the loan origination fees too. We will share 50% of the Loan Origination Fees with our partners forever for the partner’s clients.

Future Benefits

The tokens serve as means of voting — the key decisions will be put for the vote to the community. We will do what our community decides to do.
We will migrate the token into a full governance token, but this will take time. First, we focus on adding features to the project and growing our community. When we are big enough with an active community, we will migrate our token into a governance token. Of course, if our community sees the need to move faster to governance tokens, we will do so. The objective of the governance mechanism is that all stakeholders — borrowers, lenders, B2B partners, projects — can participate in the steering and development of a strategic roadmap of SmartCredit.io. Our goal is to have a balanced view between all stakeholders
We believe in customer-centric innovation; we believe the community proposals can best steer the development of SmartCredit.io (like in Ethereum Improvement Proposals — EIP’s). We will implement the mechanisms so that customers will decide the future of SmartCredit.io.

Additional information

Follow us on social media:

Telegram: https://t.me/SmartCredit_Community
Twitter: https://twitter.com/smartcredit_io