- Credefi will become a Wisdom Seeker in the Lithium ecosystem, allowing users of the decentralized lending platform to receive accurate pricing on collateral from Wisdom Nodes.
- The data from Lithium will help lenders on Credefi to have a more comprehensive assessment of the borrowers’ collateral and their risk profiles.
- The Lithium — Credefi partnership will encourage additional TradFi lenders and borrowers to switch to decentralized platforms like Credefi, diversifying the real-world assets in the DeFi space.
Credefi will be a Wisdom Seeker in the Lithium ecosystem and able to leverage the data provided by Wisdom Nodes to get accurate pricing information on collateral. As a result, lenders will enjoy more accurate assessments of loan proposals from specific borrowers according to their risk profile.
Wisdom Seekers and Wisdom Nodes are the accents of the DMI mechanism, an instrument that the Lithium oracle relies on. Wisdom Seekers request pricing on specific private assets, real-economy assets in this case, while simultaneously incentivizing and rewarding Wisdom Nodes, who offer truthful and accurate answers.
Thanks to Lithium’s integration, borrowers on Credefi will be able to take advantage of the crowd’s collective wisdom and get unbiased assessments on loan proposals in a truly decentralized fashion. At the same time, lenders’ interests will be further protected with a broader base of risk estimation. In the long run, this partnership could be a pivot point for the future scaling of the DeFi lending market.
Partnerships of this importance are crucial for the further stabilization of the entire DeFi sector, where all participants can experience the limitless opportunities and true power of financial decentralization. Pioneers Lithium Finance and Credefi will bring the meaning of investment reliability to a whole new level by combining trusted information with next-gen collateral security.
David Lighton, Co-founder of Lithium Finance, believes that “What DeFi needs to go mainstream is the inclusion of real-world assets into the space, and the legacy TradFi and credit market is an important part of that. Credefi has been bringing the real-world credit market into the DeFi space, and I’m glad that Lithium is now part of the driving force to help democratize this.”
Ivo Grigorov, Co-founder of Credefi “We are excited to partner with Lithium Finance — a first of its kind oracle valuing illiquid real-economy assets serving as collateral in Credefi’s three-layer protection mechanism for lenders. We’ve been on the look for such a solution and we’re thrilled that we finally found it. Lithium Finance will be of an essential help to achieve our long-term goal for fully decentralized on-chain lending bridging the gap between the crypto and real-economy worlds”
About Lithium Finance
Lithium Finance is the first collective-intelligence pricing oracle to give precise and timely pricing on private, illiquid assets. It rewards analysts who provide truthful information and punish those who offer false pricing data. As a result, Lithium’s users obtain pricing for all hard-to-value assets such as pre-IPO stocks, private equity, and other illiquid assets effectively.
Credefi connects crypto lenders with SME borrowers from the fiat economy. The protocol resolves the key challenges that DeFi and TradFi are facing today: DeFi’s inconsistent, fragile yields that evaporate in bear markets and speculative borrowers that are fickle and cannot satisfy DeFi lending supply; as well as the difficulty for SMEs to get TradFi funding at normal interest rates.