Real-world assets (RWA) are arguably one of the hottest narratives throughout the past few months. Credefi, one of the more popular projects in the field, has been making waves and turning heads in the past year. Its value has more than tripled as the team continues expanding the protocol’s capabilities and delivering on its roadmap. […]

Real-world assets (RWA) are arguably one of the hottest narratives throughout the past few months.

Credefi, one of the more popular projects in the field, has been making waves and turning heads in the past year. Its value has more than tripled as the team continues expanding the protocol’s capabilities and delivering on its roadmap.

The team has recently delivered integral upgrades to the protocol and forged massive partnerships. But before we dive into it, let’s quickly go through what Credefi aims to achieve and why it’s an RWA project to watch.

Credefi Looks to Bridge EU’s Debt Financing Gap

In essence, Credefi is on a path to bridging the European Union’s debt financing gap by delivering a robust lending platform that offers stable and predictable returns generated from the real economy.

The project’s mission is also to facilitate real-world impact through developing fair and accessible lending solutions to SMEs (small and medium-sized enterprises) in the European Union.

Credefi is incorporated in the EU and is run by a team of veteran professionals with a deep understanding of the lending market, as well as rich economic experience.

In a landmark partnership back in 2023, Credefi teamed up with Experian – becoming the first in the blockchain industry to secure a collaboration of this proportion. For those unaware, Experian is one of the two-largest credit bureaus throughout the whole world.

The legitimacy of Credefi is firmly reflected in the value of its token as well as in its growth throughout the past year. CREDI is up a whopping 600% in twelve months, highlighting the potential of the path the team has taken.

Blasting Through Major Milestones: First-Ever Revenue Share

In a bid to deliver true value to its community, the Credefi team has successfully initiated its first-ever revenue share for holders of xCREDI. This marks a significant milestone in the team’s commitment to delivering on its promises.

The profit sharing model is one of the integral features that are now permanently embedded into Credefi’s underlying protocol.

Each year, 10% of the revenue that’s generated by the project will be distributed among holders of xCREDI tokens.

In essence, this suggests that as the project grows and generates higher revenues, its community members receive a direct avenue for tapping into these profits, making the token an attractive option to investors looking to realize yield from their tokens while also being exposed to the exciting field of real-world assets.

As mentioned above, the first revenue-share event took place less than a couple of weeks ago, following a snapshot of xCREDI holders. The team has provided a detailed explanation of how to claim the rewards in the following post:

Understanding the CREDI to xCREDI Relationship

As you’ve probably noticed, Credefi boasts a dual-token system that relies on a symbiotic relationship between CREDI and xCREDI tokens.

On May 22nd, the team relaunched its Module X, embedding it in the protocol permanently. It gave the green light for users to stake their CREDI tokens and receive xCREDI tokens in return based on a bonding curve that varies over time. Moreover, the staked CREDI tokens get burned after a period of six months, hence turning the cryptocurrency into a deflationary one.

The initial bonding curve was 10:1. This means that for the first 100,000 CREDI tokens that are staked and later burned, 10,000 xCREDI tokens will be minted.

Holders of xCREDI are entitled to bi-annual profit sharing under the conditions specified above. But beyond that, xCREDI token holders can also participate in the governance of the project, contributing to its further development.

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