KuCoin AMA With Creditcoin (CTC) — A Borderless Credit Investment Network
Dear KuCoin Users,
Time: July 1, 2022, 12:00 PM - 12:54 PM (UTC)
Creditcoin is a foundational L1 blockchain designed to match and record credit transactions, and by extension, the credit history of transacting partners. By design, Creditcoin is intended to facilitate an inter-blockchain lending market with loan cycle history recorded on Creditcoin, but with loan payments and repayments occurring on other blockchains; with Bitcoin and Ethereum being the currently supported networks, and support for other blockchains in the pipeline. By recording the on-chain credit history of transacting partners, Creditcoin creates an objective public ledger of credit history and loan performance, enabling parties to easily verify and trust the credit history and creditworthiness of potential lenders/borrowers, and more. In the case of lending institutions or other partners in the developing world, building an objective record of on-chain credit history and loan book performance will increase trust and enable a more efficient and transparent allocation of capital into global developing credit markets, with the ultimate goal of democratizing global credit market access for retail investors.
Official Website: https://creditcoin.org/
Tae Oh — Founder of Creditcoin
Q&A from KuCoin
Q: What motivated you to create Creditcoin? How does it help people?
Tae: There were two primary motivations when we started this project. The first was to make cryptocurrency lendable. The second was to bridge crypto lending to the real world, particularly the unbanked and underbanked in emerging markets.
DeFi lending protocols have made huge strides in the first regard, but as long as DeFi doesn’t solve the problem of non-collateralized lending, it can’t interface with the biggest real-world use-cases for credit. That’s where Creditcoin comes into it.
You can think of Creditcoin as a public credit bureau built on a blockchain. Essentially a reputational ledger.
The problem for emerging market borrowers, both the end-users and lending intermediaries seeking to raise lending capital, is that there is essentially very little trust in their ability to pay back. Creditcoin plugs directly into these lending intermediaries and records all their credit transactions on the blockchain. That means anyone can independently audit their credit performance, reducing information asymmetries between market participants.
With all of that extra transparency, it’s much easier for lending institutions and borrowers to access financing because you can now trust the business performance you’re investing in. That means Creditcoin can help unlock capital financing for these emerging market lenders and, by extension, increase the availability of cheap and accessible capital to millions of unbanked borrowers in emerging markets.
Q: Would you briefly talk about CTC and the utilities? / What are the uses of CTC?
Tae: CTC is the utility token of the Creditcoin blockchain. Whenever you want to write something onto the chain, for example, making a loan request, submitting a deal, registering a transfer, and more., the user must pay a fee of CTC. The cost of this fee depends on the computation load of the different transactions, much like gas fees for Ethereum.
Aside from that, CTC can also be staked to receive GATE rewards. The utility/tnx token of our upcoming Gateway DAO, a multi-chain bridge ecosystem.
Finally, we’re planning to implement governance features with the CTC token; however, we’ve been entirely focused on delivering Creditcoin 2.0 this past year, so this feature is very much still for the future.
Q: What does Creditcoin and Aella integration mean?
Tae: So we recently completed our first real-world Credticoin integration. That means Aella, a digital banking app and credit provider in Africa, is now recording all its loan transactions on the Creditcoin blockchain via our Credal API. Having completed the integration just over a week ago, we’ve already recorded over 28,000 Aella loans on the Creditcoin manner, collectively worth over $1.8M. For us, that’s an incredible milestone and the first time we’ve seen Creditcoin doing what it was always built for - real-time loan book transparency.
Once our new block explorer is out, you’ll be able to view all sorts of detailed loan book metrics such as outstanding loans, historical default rates, average returns, and more. This kind of real-time transparency is designed to give investors confidence and unlock a huge new source of crypto-liquidity for borrowers in the developing world.
Q: What is OpenFi? And how is OpenFi different from DeFi?
Tae: For us, it means bridging the gap between the amazing technology of DeFi and ensuring it helps generate real-world value. We want to use crypto and help reshape the global financial system, but we know we can’t replace it directly.
For example, Creditcoin can’t solve the problem of emerging market finance alone. Our intermediaries, such as Aella, are vital in assessing risk, enforcing repayment, and deploying capital. Uncollateralized P2P DeFi loans wouldn’t work in this case. OpenFi is about harmonizing crypto and the real world, even if that means giving up on maximum decentralization in places.
With that in mind, there are three main principles OpenFi works towards. Democratization, which means unlocking restricted investment opportunities to everyday investors. Transparency, which means making sure parties are publicly accountable. And finally, impact, which means creating protocols and services that generate real-world value for people worldwide. Something that crypto certainly needs more of.
You can get an overview of the OpenFi ecosystem here.
Q: What can you tell us about Gluwa and how is it connected with Creditcoin?
Tae: Creditcoin is an informational base layer between investors (like you and me), fundraisers (e.g., Aella), and borrowers (end-users). They were designed to increase information and trust.
Gluwa, on the other hand, is a money market where investors can invest their money in various fundraisers — designed to enable international investment and raise liquidity.
If you want to invest in companies like Aella, you can download the Gluwa app and deposit your funds into one of our various Gluwa Invest Accounts, offering up to 15% APY. Our yields are generated through debt-financing deals with real-world businesses such as Aella.
Gluwa also has various wallet and exchange features, but as far as Creditcoin goes, that is the primary function.
Q: Can anyone invest in your platform? and do you plan to expand in the future?
Tae: Not everyone can use Gluwa Invest. For the time being, US non-accredited investors are excluded. Hopefully, this will change soon, but regulatory compliance is our priority.
As for any other country, yes, it’s open to anybody!
At the moment, we offer generalized accounts, meaning we (Gluwa Capital) choose which portfolio companies your money goes to. However, our upcoming investment portal will let you choose which companies you want to invest in, with various loan terms on offer.
Q: Can you briefly tell us about what is Credal?
Tae: Credal is our recently released API service for Creditcoin. In short, Credal allows our lending partners and other platforms to integrate directly with the blockchain. This initial release is invite-only. However, if you’re interested in signing up, you can register your interest here.
Q: Does CTC have a staking function?
Tae: CTC can be staked for GTD in the Gluwa App. By staking your CTC, you will earn GATE rewards, the native utility token of our upcoming Gateway DAO, a multi-chain bridge ecosystem we will release soon.
You can always unstake your CTC any time, pending a cool-down period.
Free-Ask from KuCoin Community
Q: How can users stay updated with this project? Are there channels, including local communities, where users can get the latest updates?
Tae: Follow us on Twitter for the latest updates!
Q: Smart contracts are prone to failure, and many projects fall victim to it, costing user funds and discrediting projects. How reliable and secure are your smart contracts? Did you test it with either party?
Tae: To ensure security for our users, we get our smart contracts audited by third parties, including Consensys and Certik.
Q: Can you list three (3) killer features of your project that make it ahead of competitors? What are the competitive advantages that you feel most confident about?
Tae: Our killer features are:
1) Distribution - We have already reached out to 9M users and are still growing.
2) Non-collateralized lending; and
3) End-to-end ecosystem - bridging TradiFi to Defi/developed markets to emerging markets
Q: Why did Creditcoin partner with a digital banking app in Africa? How will they leverage the Creditcoin blockchain through your API?
Tae: It is because unbanked and underbanked can benefit most from the democratized financial system that blockchain can build.
Q: Can you tell us about your team members? Are they qualified and professional in their fields? What are the recruiting qualifications for team members for your extraordinary project?
Tae: We have a multi-layer technical stack (mainnet, smart contract, web backend, and front end); a large & experienced tech team. We have Fifty-three (53) team members, and thirty-six (36) of them are engineers!
Q: Partnership is always an important factor for every project. So who is your partner? What are the benefits you get from those relationships?
Tae: We have many partners at this point. CRIPCO, Stacks, Flow, Horizen, and more. Each blockchain serves a different purpose. We work with our partners to expand our offering by integrating their features.
Q: What are your top three (3) things for priorities in 2022? Could you share some plans for the upcoming year?
Tae: We are focusing on delivering planned features and expanding our distribution further: more users and regions.
KuCoin and Creditcoin (CTC) have prepared a total of 5,500 CTC to give away to AMA participants.
1. Free-ask section: 200 CTC
2. AMA activity: 5,300 CTC
Quiz: 4,050 CTC
Price Guess: 900 CTC
Participation Rewards: 350 CTC
. . .
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