Lending provides participants passive yield at a controlled level of risk, while borrowers gain access to working capital for which they can do as they please. This is what is commonly referred to as a money market.
In the traditional financial system of today, money markets are operated by centralized middlemen. It is them who end up making the decisions on whether to approve a loan or not, how high the interest rate should be, putting a limit on a lender’s profitability — effectively disrupting the ability for any participant to engage in financial activity. Such centralized middlemen have proven historically they have no ethical barriers against such activity.
What if there was a money market that didn’t require a centralized middleman, but instead interactions were facilitated by a credibly neutral decentralized protocol that nobody could interfere with? We believe the market situation could be much different! This is exactly what we’re striving towards with Credefi! We are building a platform that combines the best practices of DeFi and traditional finance. Our hybrid mechanism solves real life problems and inefficiencies of the conventional banking and finance sector, and provides unique opportunities for both borrowers and lenders. Using blockchain guarantees transparency and accessibility of our solution, which means there will be no artificial barriers to loans!