Safe Credit

Walletreum innovates the new concept of crypto-backed loan, i.e. SAFE CREDIT based on “ALGON” considering the facts that how the borrower can safely take a loan on their crypto-asset without selling it, without fear of liquidation, with a minimal interest rate, without KYC, and no depreciation of user locked crypto assets in a bear market.

Walletreum

How SAFE CREDIT works?

Walletreum safe credit is the safest possible loan you can acquire in the physical and digital world. Safe Credit works with Walletreum “ALGON.” ALGON plays the role of a lender to the borrower. Anyone can borrow up to 97% loan on crypto-asset from “ALGON” with a 4.3% fixed interest rate annually in a stable coin (USDT), and your assets will be returned with zero cutting when you return the loan taken. Walletreum is also considered a bear market factor that borrower crypto-asset should not depreciate in the bear market. ALGON will also play the fund manager’s role in a bear market to secure the funds from depreciation if a price strikes down from the deposited price.

How Safe Credit is "SAFE"?

Safe credit is "SAFE" because traditional lending platforms only provide benefits in asset value appreciation; we have a massive advantage over them by giving benefits to our users even when the market is bearish. Walletreum safe credit is the safest possible loan you can acquire in the physical and digital world due to several reasons mentioned below:

  • No KYC
  • No liquidation
  • No Credits checks
  • Minimum fixed interest rate
  • Loan return in stable coin or any crypto-asset available on Walletreum
  • Interest is debited from your available balance, so you do not need to be worried about monthly repayments or installments. Payback when you are ready.
  • The borrower can return partial loans and can unlock their crypto-asset equivalent to the return amount.
  • Return your acquired loan to Walletreum and get back your deposited asset with ZERO cutting and without fees.
  • No price depreciation of locked crypto-asset up to 9% fall in price from deposited price.
  • If the borrower locked crypto asset falls 10% in stable coins (USDT) value or more from the deposited price then ALGON will minimize the depreciation. IF the market drops 10% in stable coins (USDT) value from the borrowed price then the locked crypto asset value will be depreciated 1% at the end of the lock period and so on. For better understanding, we have given the numerical example with assumed values as follows

Let assume the crypto-market Drops:

User (X) mortgage = 1 BTC

Price of BTC at the time of borrowing = $ 10000

X will receive safe credit instantly = 97% of $10000 = $9700

Depreciation = 1% to 9% depreciation from the original amount in-case of market drop
(if market drops 10% = Amount depreciation 1% of $10000
if market drops 20% = Amount depreciation 2% of $10000)

Interest on loan = 4.3% yearly

Interest on the loan per month = 4.3 / 12 month = 0.358%

Unlock time period of asset(BTC) = any time (X) pay back the loan + interest(4.3%)

Now, if BTC price drops 20% at $ 8000 after 2 months and you(X) decided to get his mortgage asset (BTC) back. User(X) can withdraw instantly

Interest payable after 2 months on $9700 = 0.0358% * 2 * $9700 = $6.94

Amount depreciation on 20% market drop = 2% of $10000 = $200

User(X) will get = Mortgage price($10000) - $200(2 % depreciation on 20% market drop) - $6.945(interest) = $9793.36 in stable coin

Note: IN A BEAR MARKET, USERS CAN WITHDRAW EQUIVALENT VALUE IN A STABLE COIN-OR IN BANK, WHEREAS, IN A BULL MARKET, USER CAN WITHDRAW IN THE DEPOSITED CRYPTOCURRENCY

Walletreum vs Other Lending platforms

Product
Lending Interest Rate
Borrowers Interest Rate
Lenders/Borrowers
Deposit & Withdrawal
Benefit from Asset value Appreciation
Benefit from Asset value Depreciation
Token Benefits
Addtional Fees
Coverage
Walletreum
Safe & Flexible Loan
High up-to 130% APY
3.44% - 4.33% APR
Yield Farming
Instant
Yes
Yes
Dividends / Low Interest / Fix Supply
No
Worldwide
Other Lending platform
Installment & Other
Low APY
More than 7% APR
None
May take hours to day
Yes
No
Membership/ Discounts
Some have hidden fee
Worldwide