What is Credix Finance? Similar to other Credit Protocol projects, Credix Finance is a connecting platform between borrowers and lenders.
So what makes Credix Finance stand out compared to other projects? Let’s find out details about this project!
What is Credix Finance?
Credix Finance is a project belonging to the Credit Protocol puzzle built and developed on the Solana ecosystem. Through the platform, Lenders (Lenders) can earn stable profits by providing liquidity to the project. Borrowers can borrow assets at low interest rates and fast speeds.
Credix Finance’s Operating Mechanism
Terminology explained
- Investors: These are Borrowers (Lenders), there are 2 options for Investors: 1/ Invest Junior Pool receive Tranche Tokens representing the deposit amount. 2/ Invest in Senior Pool receive LP Tokens representing the deposit amount.
- Underwriters: Investors invest Junior Pool.
- Borrower: These are people who want to borrow money, can be traditional financial institutions, companies, businesses…
- Asset Manager: As a market administrator, connecting Investors and Borrowers, creating Deals when requested by Borrowers.
Mechanism of action
Suppose Borrower borrows $1M at an interest rate of 15% per year
- Step 1: Borrower applies for a loan through the platform using Real-World Assets as collateral. Real-World Assets can be real estate, houses, cars, bonds…
- Step 2: Asset Manager checks, evaluates, and approves loans. Package the loan into 1 Deal (Transaction).
- Step 3: Underwriter selects investment deals and can use financial leverage. Assuming Underwriter invests $200k and uses X4 leverage, $800k will be withdrawn from Senior Pool. Thus, there will be $1M loaned to Borrowers.
How to calculate profit
- Asset Manager: receive 10% of profits called Performance Fee from that Deal.
- Liquidity Providers: Liquidity Provider Yield = Interest Rate x (1 – Performance Fee – Underwrite Fee) = 0.15 x (1 – 0.1 – 0.2) = 0.105 =)) There will be a profit of 10.5%
- Underwriters: Underwriter Yield = Interest Rate x (1 – Performance Fee + Leverage Ratio x Underwriter Fee) = 0.15 x (1 – 0.1 + 4 x 0.2) = 0.255 =)) There will be a profit of 22.5%
Project Highlights
- Invest with low risk thanks to Backed assets Real-World Assets.
- Providing a stable source of profit for investors thanks to a large loan flow from the traditional market.
Development Roadmap
- Integrate Stablecoin UXD into Credix Finance (UXD will be Backed by 50% Real-World Assets of Credix Finance)
Core Team
Thomas Bohner: CEO | Founder
- He has a master’s degree in economics from the University of Antwerp, Belgium.
- He has more than 3 years working at IntellectEU – a company providing financial technology services. Here he was exposed to Crypto and Blockchain when the company developed many applications related to Blockchain.
Maxim Piessen: CTO | Co Founder
- He has a master’s degree in physics from the University of Antwerp.
- He has more than 2 years working at IntellectEU. Here he is responsible for AI and Data.
Chaim Finizola: CGO | Co Founder
- He graduated with a master’s degree in economics from Antwerp University.
- He has more than 3 years working at IntellectEU. Here he is responsible for strategic projects related to Blockchain.
Investor
- December 21, 2021: Announcement of successful $2.5M round Seed Round Led by DRW Cumberland and ParaFi Capital with participation from Solana Ventures, Parrot Finance, MGNR, Mercurial, Petrock Capital, Fuse Capital and a number of other angel investors.
- September 6, 2022: Announcement of successful $11.25M round Series A Led by Motive Partner and PariFi Capital with participation from Valor Capital, MGG Bayhawk Fund, Victory Park Capital, Circle Ventures, Fuse Capital.
Tokenomics
Update…
Project Information Channel
- Website: https://credix.finance/
- Twitter: https://twitter.com/Credix_finance
- Linkedin:
Summary
Credix Finance is a project worth watching as it receives a lot of attention from large investment funds. However, up to now the project has not yet launched a governance token. This is an opportunity to help everyone receive Retroactive as a Skin in the Game project.
Let’s follow the development of the project in the future with Weakhand!