@smartcredit/client-sdk NPM

Introduction

SmartCredit.io is a peer-to-peer marketplace for borrowers and lenders. It works as follows:

Borrowers define their loan requests with Credit Lines.
Lenders define their personal Fixed-Income Funds.
SmartCredit.io does the matching between the borrowers’ and lenders’ requests.

Most borrowing/lending platforms offer variable-rate, variable-term loans for borrowers. SmartCredit.io focuses on the real economy—it offers fixed interest rates and fixed terms for borrowers.

SmartCredit.io’s focus is on:

Fixed-term/Fixed-interest loans for borrowers with Credit Lines.
DeFI Fixed-Income Funds for lenders—lenders define into which maturities they want to invest.

Why do we need a fixed interest rate? Because the real economy works based on predictability. It’s about knowing the costs of capital in advance. Or it’s about knowing the value of your liabilities.

Lenders define their personal DeFi Fixed-Income Funds in SmartCredit.io. They define what kind of loans they want to invest in and describe their investment rules. Every lender can choose if they prefer short-term lending strategies (with less interest) or long-term lending strategies (with more interest). Every lender can define how much of their portfolio to invest in the shorter-term and/or longer-term.

Borrowers define their collateralized loan requests within the Credit Lines. Concrete collateral ratio depends on the volatility of the collateral asset, on the loan term and on the trust score of the borrower. The interest rate curves are predefined. Concrete interest rate depends on the underlying asset, on the loan term and trust score.

SmartCredit.io does in the background automated matching of borrowers’ loan requests with lenders’ fixed-income funds.

SmartCredit.io monitors the loan, and if the borrower does not pay or the borrower’s collateral value sinks too much, the loan is liquidated. The borrowers collateral assets in the smart contracts are protected with the oracles - liquidation process starts only after the oracle will confirm the liquidation.

SmartCredit.io never earns on liquidations—what remains from the liquidation are transferred back to the borrower. This is one of the key differences from our competitors (Aave, Compound, and Maker). Our competitors earn revenue while liquidating the under-collateralized borrower because the collateral is sold at a discount, and the remainder of the collateral value becomes the profit of liquidator bots. Most of these bots are hosted by the respective platforms, and liquidation revenues transfer into the platform revenues; in some months, even 50% of the respective platforms’ revenues.

In case the collateral does not cover the borrower's obligations, the Loss-Provision Fund will pay the gap to the lender.

And from regulations point of view:

SmartCredit.io is not pooling client assets; it's pure peer-to-peer play. Therefore, it does not need to register as a security.
Our competitors have implemented the peer-to-pool-to-peer business models, then they will need to register as a security (and they will probably never get this registration).

Usage

Install SmartCredit.io SDK using npm:

npm i @smartcredit/client-sdk

Initialize Borrowing SDK

The basic initialization for integrating the Borrowing SDK will look like this:

import { NewBorrowingService } from '@smartcredit/client-sdk';

public newBorrowingService;

this.injectedProvider = (window as any).ethereum;
this.newBorrowingService = new NewBorrowingService({
    web3Provider: new Web3(this.injectedProvider),
    env: "prod" or "beta" // Prod inluceds production config and Beta includes test config with ropsten network
});

Initialize Lending SDK

The basic initialization for integrating the lending Widget will look like this:

import {  LendingService } from '@smartcredit/client-sdk';

public LendingService;

this.injectedProvider = (window as any).ethereum;
this.LendingService = new NewBorrowingService({
    web3Provider: new Web3(this.injectedProvider),
    env: "prod" or "beta" // Prod inluceds production config and Beta includes test config with ropsten network
});