SmartCredit.io
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  • SmartCredit.io
  • Fixed-term/Fixed-rate Borrowing/Lending
    • How are loan requests matched?
    • Credit Lines
    • Fixed-Income Funds
    • Fixed Loan Term
    • Fixed Interest Rate
    • Efficient use of Collateral
    • Positions Monitoring System
    • No Bank Run Risks
    • Collaterals
    • Collateral Ratios
    • Liquidations
    • Loss Provision Fund
    • Oracles Integration
    • Fiat On-Ramp/Off-Ramp
    • Borrow/Lend SDK and Widgets
      • Use Cases
      • Borrow/Lend SDK
        • Borrowing SDK
          • Authentication
            • Auth Challenge
            • Authenticate
          • Validators
          • Collateral Ratio
          • Credit Line
            • Get Credit Lines
            • Create Credit Line
          • Loan Request
            • Calculate Collateral Amount
            • Sign Loan Request
            • Create Loan Request
          • View Loans
            • All Loans
            • Single Loan
          • Deposit Collateral
            • Deposit collateral for ETH
            • Deposit Collateral for ERC20
          • View Collateral
            • Locked Collateral
            • Unlocked Collateral
          • Repay Loan
            • Repay ETH Loan
            • Repay ERC20 Loan
          • Terminate Loan
          • Liquidation
            • Liquidation Probability
            • Increase Collateral for ETH
            • Increase Collateral for ERC20
        • Lending SDK
          • Authentication
            • Auth Challenge
            • Authenticate
          • Create FIF
          • Get FIF List
          • Deposit in FIF
            • Deposit ETH
            • Deposit ERC20
          • Withdraw FIF
          • Terminate FIF
      • Borrow/Lend UI Widgets
        • WordPress Integration
          • Borrowing Widget WordPress Plugin
            • Integration
          • Lending Widget WordPress Plugin
            • Integration
        • JS Integration
          • Borrowing Widget Integration
          • Lending Widget Integration
  • Fixed-term/Fixed-rate Leveraged Lido staking
    • Start leveraged staking
    • Regular finishing
    • Early finishing
    • Positions Monitoring
    • Platform Fees
  • How to earn?
    • Earning via Rewards
    • Earning via Fixed-Term/Fixed-Rate
    • Earning via Leverage Lido Staking
  • Staking and Rewards
    • Borrower and Lender Bonus Rewards
    • Staking
    • Gasless Re-staking
    • Integrator Rewards
    • Affiliate Program
  • Security
    • Audits
    • AI-based Crypto Transactions Monitoring
    • Bug Bounties
  • Regulations
    • Peer-to-Pool-to-Peer Business Models
    • Peer-to-Peer Business Models
    • Offering Access to the Securities Products
    • Crypto Transactions Monitoring
  • Roadmap
    • Release 1.0 - Foundation
    • Release 1.1 - Fixed Income Funds
    • Release 1.2 - Credit Lines
    • Release 1.3 - UI & AI
    • Release 1.4 - Fixed Rate Leveraged Lido Staking
    • Release 1.5 - Simple and Advanced Borrowing
    • Release 1.6 - Islamic Banking
  • Our Token
  • Partners
  • Revenue Model
  • FAQs
  • Tutorials
  • Social Media Channels
  • AI-driven Decentral Autonomous Bank
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  • Tutorial videos:
  • Further info
  1. Fixed-term/Fixed-rate Borrowing/Lending

Credit Lines

SmartCredit.io Credit Lines are similar to TradFi Lines of Credit. Borrower’s collateralize their Credit Lines and can borrow again and again against his collateral.

PreviousHow are loan requests matched?NextFixed-Income Funds

Last updated 6 months ago

Borrower specifies for his loan:

  • The asset for borrowing - that's one of the assets of the , which provide assets for borrowing

  • The for the loan

  • The

Concrete for the loan depends on the

  • loan term

  • borrowed asset

  • collateral asset

  • borrowers trust score.

Concrete for the loan depends on the:

  • loan term

  • borrowed asset

  • borrowers trust score (it's calculated automatically)

The system creates in the background always a credit line during the first loan. When borrowing a second time, the existing credit line is used.

The borrower can have different types of collateral in one credit line and multiple loans via his credit line. If the borrower’s loan is liquidated, then the remaining funds are transferred into the borrower’s credit line.

The borrower can:

  • Borrow again and again against unallocated collateral in the credit line.

  • Withdraw unallocated collateral (i.e., collateral that is not used for active loans) at any time.

  • Increase the collateral ratios of the active loans.

  • Add more collateral assets into his credit line.

Borrower needs to pay gas (ETH) for the transactions:

  • By the first loan for creating a credit line

  • By depositing collateral

  • By paying back the loan

If borrower has already collateral in the credit-line, then he can create new loan requests without the gas payment. In this scenario, he needs to pay gas only by paying back the loan, which means significant gas savings for the borrower.

SmartCredit.io does not re-hypo the collateral. The collateral is locked in the credit lines; it’s “out of circulation”.

There are four types of credit lines:

  • ERC20-ERC20 is for borrowing ERC20 assets against ERC20 collateral.

  • ERC20-ETH is for borrowing ERC20 assets against ETH collateral.

  • ETH-ERC20 is for borrowing ETH against ERC20 collateral.

  • ETH-ETH is for borrowing ETH against ETH (in case someone wants to do this).

Tutorial videos:

Further info

A credit line is always created with the first borrowing transaction and will be used in subsequent borrowing transactions. The assets in the credit line can be continuously re-used. It's like a collateralized line of credit in .

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Fixed-Income Fund
collateral asset
loan term
collateral ratio
interest rate
traditional finance
SmartCredit.io intro
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