Sometimes, unfortunately, we find ourselves in unexpected «urgently needing cash» situations, when, for example, «the washing machine broke down», «the new iPhone fell into the toilet,» the car broke down. » Thoughts like «Damn! Why now? «Automatically come to mind. «I just bought cryptography, the market has become a full bear, and I do not want to sell now, but I still need to wait 3 weeks before my salary arrives.» Sounds familiar?
Perhaps a more familiar situation for many crypto investors is when you want to invest in ICO, but do not want to sell your crypto-cocks yet … How many of these have passed these excellent ICOs because of this? Or you are one of those lifelong holders with large bags and do not want to liquidate their holdings, but want to get a loan for large purchases.
Now the image desperately enters the bank with a bag full of cryptography, smiles and asks the bank officer if you can leave your crypt bag on the counter as collateral, because now you need some dollars. I think that we all can agree that traditional banks will laugh at our faces before they shut the door when we want to leave our bitcoyne, ethers or something like cryptography as a «deposit.» This is where Libra Credit comes in, offering a direct solution:
Libra Credit is a decentralized credit system that facilitates access to loans anywhere and anytime!
How it works? Here is an example of a crypto credit for Libra Credit. Suppose Bob, a member of the LBA community and the XYZ token holder need cash, and wants to mortgage XYZ Tokens for a 30-day loan in US dollars (USD).
Step 1: Application: As the owner of the LBA (Libra Credit) token and member of the platform, Bob fills out an online application form and provides digital documents (if required) to Libra Credit.
Step 2: Credit check and assessment: Libra Credit checks the identity of the borrower after applying. In particular, in order to obtain more authorized and verified Bob data, Libra Credit can make a selective request for information disclosure to verification partners (for example, uPort). Users with existing identity management credentials on supported platforms can bypass the KYC process. After the verification, the automated credit score in real time is carried out by own large data and a credit rating mechanism based on AI. Based on
credit scores and pledge of Bob, Libra Credit will generate appropriate credit conditions.
Step 3: Notification and Confirmation: Bob will be immediately notified via APP, SMS or email of the final loan terms, in which he can immediately take one click.
Step 4: Security deposit: The XYZ icon from Bob is deposited in the electronic wallet of Libra Credit or its exchange partners, depending on the preferences of the borrower. Collateral resources will be reliably preserved for the entire crediting period.
Step 5: Payment: US dollars will be instantly deposited from the purse of creditors to Bob. If Bob wants to get a loan in his digital wallet (for example, Alipay, WeChat Pay), the whole process will be completed in a few minutes. If Bob prefers to deposit a bank account, one business day is required for the loan. This is much faster than most digital creditors that require day (s) and traditional credit institutions, which require at least 2-4 weeks for processing.
During the crediting period, Bob makes weekly payments (or any other frequency approved by Libra Credit). When the loan is repaid, the Bob XY token returns.
In fairness, it should be noted that this cryptographic approach to lending with the concept of «paypal» is not entirely new, and there are several competitors on the market that offer a lending service such as Nexo, Salt and Request Network. does Libra Credit do better than these other projects? Their network !, but I will discuss this further. What libracredit offers is that they will use their credit management capabilities to serve clients without cryptoactive assets!