Credefi has introduced a novel staking model that incorporates Module X, designed to provide competitive yields while safeguarding investors' funds. This groundbreaking strategy directly addresses the pitfalls associated with SME loans. It further mitigates the impacts of volatile crypto markets by tying protocol rewards to the value created in the real economy. You can stake your CREDI tokens and earn xCREDI tokens. These xCREDI tokens are integral to governance and help to allocate rewards across the platform. Stakers in the staking model receive 70% of the platform fees. They earn regular rewards in CREDI and xCREDI as well as unique privileges that motivate active participation in Credefi’s growth. The staking model features liquidity provision to the xCREDI/USDT liquidity pool, generating users transaction fees and further incentives. Credefi’s staking model employs a deflationary token model to help counteract volatility in the market. It often burns a percentage of xCREDI and CREDI tokens, further reducing the circulating supply of CREDI. As such, Module X is performing a critical function for safeguarding investor funds on Credefi.
Staking Levels and Benefits
Credefi boasts several staking tiers, with each one offering unique advantages suited to various investment priorities and risk tolerance levels. These levels are designed to appeal to the widest possible range of users. Some investors are looking for low-risk, stable returns, while others are going for higher yields at a greater risk. Each tier has different standards that must be met. These parameters are the number of CREDI tokens required, the lock-in period and the rewards offered.
The tiered style also allows participants to choose their staking level in line with their fiscal objectives. It takes their budget and risk tolerance into account. The more you stake, the bigger the reward generally. This contribution is through a greater percentage of platform fees and increased periodic rewards distributed in both CREDI and xCREDI tokens. These supercharged benefits create strong incentives for bigger investments and longer commitment stretches. Consequently, they cultivate an active and loyal base of users and stakeholders within the Credefi ecosystem.
Module X and Investment Protection
Module X acts as the foundation of Credefi’s staking model, providing the strongest investment protection system. This mechanism addresses the inherent risks associated with SME loans. It acts as a security blanket over investors’ money, shielding it from loss. With the integration of Module X, Credefi strives to ensure a safe and trustworthy staking experience, building trust within its user base.
Module X protects against Module defaults. It protects the Bank against underperformance on the SME loan portfolio. We provide a part of the funds that get staked through us to Module X. This module directly addresses gaps in loan repayment. This method reduces the liability of the stakers themselves. That’s because their returns aren’t dependent on the success of just one or two loans, or even a handful.
Additionally, Module X supports the price stability of xCREDI tokens by offering a market safety net during significant downturns. When the volatility is at an all time high, Module X allows you to repurchase xCREDI tokens. This move prevents the continued downward pressure on their price and protects stakers from massive losses. This mechanism helps to make the staking model appealing and sustainable, even in bear markets.
Reward Distribution and Tokenomics
With an engaging staking model, Credefi rewards participants by pooling platform fees and distributing them regularly in the form of CREDI and xCREDI tokens. It provides rewards for liquidity providers of the xCREDI/USDT pool. This multi-pronged approach helps ensure that stakers are actively incentivized to engage in the ecosystem. It helps create an active and passionate local base. About half of the platform’s revenues derive from loan origination, interest payments, and other related loan servicing activities. This revenue is subsequently paid out to xCREDI holders, directly aligning the success of the platform with the rewards that stakers earn.
Beyond platform fees, stakers earn rewards at regular intervals in CREDI and xCREDI tokens. Users earn rewards according to their staking levels and duration of commitment to staking. This system incentivizes them to have more of their tokens staked for longer periods of time. The distribution of xCREDI tokens promotes active participation in governance, as these tokens grant voting rights on key decisions related to the platform's development and direction.
Offering additional liquidity to the xCREDI/USDT liquidity pool greatly increases the rewards that are available to xCREDI stakers. Liquidity providers profit from transaction fees generated by all the traders that have used the liquidity provider’s pool. They are rewarded with further incentives in the form of CREDI tokens. Unlike their centralized counterparts, this mechanism rewards liquidity providers with juicy incentive tokens. It acts as a liquidity pool for xCREDI trading, serving to stabilize price and accessibility.
Credefi’s staking model adopts a deflationary token model. It consistently burns a third of both xCREDI and CREDI tokens. By doing so, their circulating supply is decreased, and therefore over time the value of these tokens may appreciate. Module X – Reduces the supply of CREDI This move reduces the level of market volatility and creates a healthier, more sustainable environment for stakers.
Liquidity Provision and Additional Incentives
Through Credefi’s staking model, users can earn rewards by adding liquidity to the xCREDI/USDT liquidity pool. This makes for incredible new opportunities to earn attractive rewards while helping to fuel the ecosystem that powers the platform itself! When users provide liquidity, they accrue transaction fees. They gain access to special incentives that improve their returns. This component of the staking model ensures that there’s always a healthy and liquid market for the xCREDI token. It provides a seamless user experience making it easy to trade and manage assets.
When users provide liquidity to the xCREDI/USDT pool, they are entitled to earnings from a portion of the transaction fees generated. These fees are derived from the trading activity within the pool. We distribute these fees in proportion to how much liquidity each user adds. This smart design provides a powerful carrot to encourage widespread adoption. The more liquidity a user contributes, the larger their portion of the transaction fees, which can result in significantly higher returns.
Beyond transaction fee revenue, liquidity providers can qualify for even more incentives with CREDI tokens. These incentives are allocated at regular intervals, incentivizing users for their dedication to keeping xCREDI a tradable asset in a liquid market. As you’d expect, you earn more CREDI tokens the more liquidity you supply. The longer you stake your tokens, the bigger your bonus will be!
Deflationary Token Model and Market Volatility
Credefi’s staking model consists of a deflationary token model, where a part of xCREDI and CREDI tokens gets burned on a regular basis. This mechanism allows the circulating supply of these tokens to decrease, increasing their long-term value. By reducing the future supply of CREDI, Module X contributes to market stabilization. This decrease in supply further fosters a more sustainable ecosystem for stakers.
The core team routinely burns some of the supply of xCREDI and CREDI tokens. Or, they might set a formula or let governance decide how much to burn. This mechanic slowly lowers the circulating supply of these tokens over time, just like the aforementioned deflationary mechanics. If the resource becomes scarcer, then the price will rise in order to accommodate this. Furthermore, the token model is deflationary, rewarding long-term stakers. Since the circulating supply must consistently go down for their strategy to work, the value of their obtained supply can only increase.
Module X has an important function of controlling the deflationary token model. This provides the necessary checks and balances to token burning, ensuring it is done responsibly and in a sustainable manner. Module X closely observes real world market conditions and makes changes to the total number of tokens to burn if necessary. This process reduces the chance for extreme price fluctuations and creates a more mature environment for stakers.
Exclusive Privileges and Active Participation
Credefi's staking model offers users exclusive privileges and opportunities for active participation in the platform's development. Stake your CREDI tokens and hold xCREDI tokens to gain access to a world of benefits. All of these benefits are aimed at enhancing your experience and incentivizing your participation in the Credefi ecosystem. You have a ton of privilege. These benefits range from voting on major decisions, obtaining exclusive events and content, and the opportunity to provide feedback and assist in shaping the platform’s blueprint.
Ownership of xCREDI tokens provide holders with voting rights over all major decisions regarding the future development, governance model, and strategic direction of the platform. And for stakers, that means they can have a direct impact on the future of Credefi. That’s how you make sure their voices are heard and their interests are represented. The voting power of each staker typically corresponds to the number of xCREDI tokens owned by them. This structure incentivizes users to accrue more tokens and become more involved in governance.
Through staking, not only do audiences receive democratic voting rights, they gain access to staker only events and content. They get to attend exclusive webinars, AMAs (Ask Me Anything) sessions, and have early access to new features and products. These experiences provide stakers with helpful context into the direction Accretion is taking the platform. They provide chances for up close and personal engagement with the Credefi team and other community members. This exclusive content will help educate and inspire stakers to take action, creating a community of shared purpose and commitment.
In addition, stakers get multiple chances to offer input and help shape the platform’s direction. Credefi has a strong commitment to listening to its community, conducting regular polls to gauge interest in new features, potential partnerships, and other strategic developments. Stakers, let us know your ideas and suggestions! Your feedback will go a long way in helping us determine how to make the platform even better and more useful for the people using it.
