The Decentralized marketplace SmartCredit unveils its latest iteration that includes new products, services, and features.
The first feature is credit lines where users can borrow multiple times against collateral and have diverse types of collateral in one credit line.
SmartCredit users have to pay gas fees for creating their credit line, depositing collateral into their credit line, and repayment of the loan.
The next service is staking for holders where 4327 SMARTCREDIT tokens will be distributed as staking rewards.
Users must keep their SMARTCREDIT in staking for at least 90 days, and if they withdraw before 90 days, their benefits are forfeited.
Borrowers and lenders will start receiving hefty bonuses. The weekly incentives are divided into 2,885 SMARTCREDIT tokens.
Borrower and lender incentives are limited (in USD value). If the platform has more borrowers than lenders, the lenders will receive higher rewards, and vice versa.
SmartCredit debuts partners’ tokens EPAN, ORION, pBTC, and PNT as collaterals. In addition SMARTCREDIT token, wBTC, ETH, wETH, DAI, USDC, and USDT can also be used as collaterals.
The new assets, which can be borrowed on SmartCredit are SMARTCREDIT token and FRAX stablecoin. SmartCredit is undergoing changes as a result of a new collaboration with Frax Finance.
The platform further went on to integrate its partner Mt Pelerin’s fiat on-ramp/fiat off-ramp solution.
SmartCredit now allows users to transfer fiat to crypto and back. For this, all you need is a TradFi bank account.
If the daily transactions are less than CHF 1000 per month or less than CHF 15,000 per month, then any wallet can be used for the transfers.
All of these modifications will aid in bridging the gap between traditional finance and SmartCredit’s decentralized approach.
Furthermore, unlike other DeFi protocols, the new iteration concentrates on pure peer-to-peer transactions rather than peer-to-pool-to-peer.
After this update, SmartCredit has decided everything for their next iteration also. The protocol is planning to introduce Standard Users, Pro Users, and Pro Plus Users.
Anyone who does not stake SMARTCREDIT or stakes less than 10 SMARTCREDIT is considered a standard user. They have borrowing bonus rewards, 10%–50% APY, depending on total borrow volume.
A Pro User is someone who has staked more than 10 SMARTCREDIT, and gets all features that a Standard User has. SMARTCREDIT staking rewards range from 40% to 80% APY depending on total staking volume.
To become a Pro Plus User, the holder has to stake at least 2500 SMARTCREDIT tokens. They inherit all features that a Pro User has, and can use their staking SMARTCREDIT tokens as collateral for borrowing.
A lot of DeFi protocols are coming out with new updates to survive in this sector and retain their community. A day back yield aggregator Yearn Finance launched version three of its core product ‘Vaults.’ The goal of v3 is to enhance the three key features of the Yearn Vaults: security, development, and automation.
