TiFi Announced Launching Crypto Loan


San Francisco, November 9, 2022. The TiFi Team

The CEO of TiFi Samuel Zhou announced that TiFi will launch Crypto Loan in TiFi Bank at the AMA meeting hosted on November 9, 2022. And the launching date is November 15, 2022.

Financial Benefits from TiFi Bank Crypto Loan

Crypto loan is a fundamental feature that empowers crypto users, investors and projects. It makes TiFi Bank a DFP(Decentralized Financial Platform) with a full feature set. Although crypto loans are an essential feature like the loan service provided by traditional banks, only a couple of crypto projects like AAVE, Compound offer crypto loans. Now TiFi has joined this party.

TiFi Allverse will benefit from crypto loans and help everyone onboarding e-commerce applications. For online-shopping customers, they can only use a few cryptos like Bitcoin, Ethereum or stable coins as payment methods; it requires people to sell the tokens at hand and lose the future opportunities of owning these tokens. Here are the main benefits of TiFi Bank crypto loan:

  1. Fast loan: get the loan right after you provide the collateral.
  2. No Credit Check: no matter what your credit score is in the real-world or other platform, there is no credit check required for using the feature of TiFi Bank, everyone can get a loan.
  3. No time constraints: borrowers can hold the asset as long as they want, the lender can withdraw at any time as long as there are sufficient assets in the pool.
  4. No amount constraints: borrowers can borrow any amount of values as long as they provide enough collateral and there are sufficient assets in the pool. And lenders can provide any amount of assets to earn interest.

By leveraging the crypto loans feature of TiFi Bank, people can get platform supported cryptos to make payments, while using TiFi token or/and other cryptos as collateral. As long as they repay part of loans, or the collateral value arises, they can borrow more cryptos, or withdraw a part or all collateral.

TiFi Bank crypto loans can also help business and investors. For example, start-ups can raise funds by providing tokens as collateral, and borrow the stable coins or other cryptos for marketing, CEX listings and pay employee salary and contractors.

For investors, you can get stable coins or WBNB to invest high potential tokens, while using TIFI or/and other cryptos as collateral. You can get the collateral back once you pay back the stable coins or WBNB you have borrowed.

TiFi Bank crypto loans can also help you to minimize the risk of the wild world of crypto especially in the uncertain market. For example, if you feel it is risky to buy BNB at this time and want to keep USDT at hand, you can lend USDT and borrow BNB. If BNB drops, you can just repay the BNB plus interest and get the original USDT back (also earn interest at the same time!).

How does TiFi Bank Crypto Loan work

As Samuel mentioned in the last AMA, the workflow of TiFi Bank Crypto Loan is designed as below:

Above workflow maps to 4 activities in crypto loan:

Deposit: Lending crypto assets, and gaining lending interest.

Borrow: Borrow crypto asset.

Repay: Repay crypto assets and borrow interest.

Withdraw: withdraw the assets you lent along with lending interest.

Each cryptocurrency has its own asset pool, TiFi Bank will provide 4 asset pools for the following 4 cryptos: WBNB, TIFI, USDT and BUSD.

The amount of the loan users can borrow depends on LTV (Loan-to-value), which has the same definition from traditional loans.

The interest amount paid to borrows is strictly equal to the earning interest amount paid to lenders.

Here is an example, a borrower borrows 40 BUSD and pays 2 BUSD (2/40 = 5% is the borrow interest)as interest amount, and the 2 BUSD goes to the lender who lent 100 BUSD (2/100 = 2% is the lending interest).

The borrow interest rate is determined by BIM(Borrow Interest Model) for each asset pool, BIM defines the function to represent the relationship between utilization rate and borrow interest rate:

In TiFi Bank, different type of asset pool as different set of parameters mentioned in below image:

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