With just a couple of weeks until the end of 2021, we’re sending away the most successful year in DeFi’s history. Several broken ATH records, multiple newly emerged ecosystems showing that Ethereum is not the only building layer for DeFi and a brand new paradigm showing that brick and mortar traditional banks actually need DeFi. To showcase the latter we can mention the noticeable examples of the European Investment Bank issuing its €100M digital bond on Ethereum and Société Générale, the third largest French bank, borrowing $20M for MakerDAO. Both examples originated in Europe – the Old Continent is the homeland of the first banks recorded in human history and for centuries was leader in the sector. No doubt Europe is also the largest crypto economy in the world with over $1T in transactions most of them coming from DeFi.
A new up and coming protocol bridging the gap between DeFi and TradFi is coming from Europe: Credefi – a hybrid of FinTech solution and DeFi protocol connecting crypto lenders of stable coins with Small and Medium Enterprise (SME) borrowers from the real world economy.
Credefi was founded out of a need to resolve major issues and DeFi and TradFi:
- DeFi’s inconsistent yields that evaporate in bear markets and speculative borrowers that are fickle and cannot satisfy DeFi lending supply
- The difficulty for SMEs to get traditional banks funding at interest rates that are not threatening the future of their business.
Credefi enables decentralized and safe lending to portfolios of businesses, protecting lenders while providing them fixed APY that is uncorrelated with crypto markets’ volatility. Credefi achieves that by its three product lines:
- Credit portfolios separate into found portfolio categories based on the risk of each underlying project.
- Peer-to-peer lending that allows lenders and borrowers to agree directly on the terms and conditions of the transaction.
- Trade finance that enables underwriting letters of credits and credit lines for cross-border transactions.
Credefi is the first blockchain project having a major partnership with a leading institution from the traditional finance space: Experian – one of the Big Three credit reporting agencies aggregating data for more than 1B companies and clients in over 40 countries. Experian will validate and calibrate the credit scoring models developed by Credefi for the risk assessment of the borrowers coming to the platform. Experian and Credefi will also strategize on how blockchain technologies and open banking data could enable easy access to finance for SMEs.
Credefi is coming out of a successfully completed $1.8M raise led by Marshland Capital and Moonrock Capital. The protocol also completed one of the best IDOs on Cardstarter – Cardano’s leading launchpad, by raising $420K.
Credefi is now listed on the Top 1 centralized exchange for altcoins – KuCoin. Credefi’s native token, $CREDI, is now actively traded on KuCoin under the pair CREDI/USDT. To emphasize on its cross-chain interoperability goals, Credefi is also traded on UniSwap under the paid CREDI/USDT and on PancakeSwap under the pair CREDI/BUSD. Credefi is working on additional CEX listings in the near future.
Credefi is part of DeFi’s new paradigm of connecting the space with TradFi and eventually merging them into one seamlessly working financial system.