SmartFi, what is it? Here is easy to use financial tools to earn, trade, & borrow crypto. Find out what exactly we are talking about.
SmartFi is a unique cryptocurrency monetary system. It combines monetary policy with the freedoms of cryptocurrency to create self-sustaining open-lending platforms.
SmarFi, an explanation:
SmartFi offers advantages over both fiat currencies and traditional crypto-currencies by combining the best components of each.
This project pioneers the use of two maximalist currencies, one for stability and one for speculation. This ecosystem’s business model of recycling capital puts upward pressure on the price of the SmartFi token (SMTF) – SMTF holders benefit from the price increase.
SmartFi’s other complementary business model creates a minable stablecoin, SmartFi USD (SFUSD), by tying the value of the token to the values traded on the network and the cost of running the network – producing a minable stablecoin in any fiat currency connecting the blockchain to the physical world.
A few more details:
This ecosystem uses a “hedge first – speculate price second” approach that produces the balance of two maximalist tokens – one for hedging and one for speculation.
With this hedge (security) first equilibrium design, it is possible to offer a guarantee for those who buy SMTF directly from the token supply on the SmartPortal.
Any SMTF token purchaser on SmartTrade can return the token at any time after one year, for any reason, for a full refund of the purchase price in US dollars or SFUSD.
One token creates wealth – the other is a lousy stablecoin that doesn’t need a peg or hot mining protocols.
This project innovates by creating two processes that produce price discovery and economic equilibrium for complete markets. These marketplaces are open and autonomous lending platforms. One market is a centralized platform (CeFi) and the other is a decentralized platform (DeFi).
What is SmartCycle?
The SmartFi centralized open lending platform has a protocol called SmartCycle that recycles capital and creates wealth. This wealth accrues to SMTF. SmartCycle has a token issuance protocol that is part of the fundamentals that produces this speculative wealth creation recycling process.
In traditional lending and trading markets this wealth creation would otherwise accrue to traditional banks, lenders, or forward markets of commodity producers. It now accrues to SMTF holders in the form of token price levels.
The SMTF token price fundamentals are directly linked to the demand for loans in the SmartCycle. As the demand for loans increases, more tokens are issued in scheduled fixed supply and price increases. This creates credit and assets like a loanable funds model used in private banking and lending.
SmartFi, what are the benefits of holding tokens native to the platform?
Smartfi token holders become the beneficiaries of wealth creation that would otherwise go to traditional lenders like banks and commodity producers. Token holders also participate in the monetary policy that runs the system. SmartFi networks eliminate transaction fees.
We managed to interest you in knowing more, so now discover this ecosystem in even more detail.