What is cryptocurrency loan: CRED new user experience

“What is cryptocurrency loan”, is a series of articles which we will present to you regularly from today.

We aim to participate in some typical cryptocurrency loan projects and write down our experience for loan users as reference. Besides, we also show the development situation of crypto-lending industry, discover high-quality project and discuss how to have a better experience in these projects.

CRED (former CRED Credit) is a popular cryptocurrency lending project recently. Today, we don’t focus on the explanation of complicated whitepaper. For the convenience of amateur users, here we present a report of user experience in CRED.

1. Register and verification

The website of CRED is:

https://www.mycred.io/loan/#/

By opening it, you can see the following page:

On the right side of its webpage,we can find the lending exchange ratio between its collaterals and loans.

By click on ETH in Collateral area,we can see the types of collateral allowed in CRED as following:

The types of loans allowed in CRED are:

Next,we click “Join Now” and start register process. The page of register information is:

Both email and phone number are accepted in register, verification code will be sent to you in the following process.

After accomplishing email/SMS code verification, we come to default page:

However, you still cannot get loan right now, you need to verify your identity before applying for a loan. We can see the following page if we click the link of “Verify now”:

There are two steps you should do here. First, bind your Ethereum address to your CRED account. It is better to fill in your main ETH address or specific lending address because you cannot change it after binding. Secondly, fill in the nationality and name, upload your ID card or passport which are similar as other crypto-exchanges.

User will receive notification email/SMS when identification process finished, then user will see the following page after re-log in:

Now you can begin your borrowing. The initial loan interest rate of CRED is 0.025% daily. This low interest could be an advantage for initial promoting of the project. However, the only loan period is 30 days, which may not reach some user’s needs, we suppose more loan periods will be introduced in the near future, that will bring more loan activity to CRED.

We choose ETH as collateral and fill in the number. Then, the system notices our collateral is insufficient:

We click the link of deposits and open the page:

According to the ETH address showed here, we can send ETH or other token as collateral and wait the transfer to complete. The message which shows deposit is complete will send to you if the Ethereum network is not crowded. We deposit 1 ETH:

We notice that the estimated USD value of cryptocurrency you have is showed in the top left corner. Thus, we fill in the amount of ETH as collateral and check “agree loan agreement”.

We suggest that you read loan agreement carefully in case something goes wrong.

Then click the get loan button. We highly suggest that you should read the detailed information carefully in the upcoming page:

Wait for 30 seconds or click submit button directly and you can see the notice of loan success.

After above process, we can receive your first capital in the platform, the information of your loans could also be found in the default page.

In the page of wallet, you can find the USDT you borrowed in:

Back to cash wallet, you can withdraw USDT to your own wallet address if you click “withdraw” in the wallet:

Click the “Set assets password” on the right side, because we didn’t set it before.

Finish the setting, we can continue the withdraw:

So far, we have shown the process of collateral and borrowing.

CRED allows prepayment for your loan. The process of prepayment is showed as followed, first of all, find the order page and click the “prepayment now” button on the right side of order.

Then, the information of prepayment is showed below:

There are two choices for you, partial payment or total payment. We choose partial payment to pay USDT back to CRED. Enter the amount you need to pay and click submit button.

Click submit again when you see the conformation page and system will notice you payment is succeed.

Now there is no USDT in our account. Therefore, to finish prepayment, we choose to pay ETH and enter the amount.

After accomplishing the payment as we did before, we transfer our ETH from collateral wallet back to the cash wallet:

Finally, we can withdraw ETH back to wallet of our own.

This is the full borrowing process in CRED. Overall, CRED has a mature process for consumer in borrowing and prepayment, which is easy for new user to handle and promoting.

Firstly, the business of CRED system is based on centralized system, operation and maintenance. Thus, it cannot reduce the risk of centralization service because it’s still traditional way of mortgage payment. Because many online P2P platforms broke recently, user still have a lot concern about centralized platform. Obviously, user will lose their money and cannot withdraw if those P2P platforms broke.

Whether CRED can enlarge business scale and achieve continuing growth is directly related to its own capital and operational capacity. There are plenty of centralized loan platform similar with CRED in the cryptocurrency area, but all of them cannot reduce the risk of centralization.

The decentralized crypto-assets lending based on smart contracts will be a safer option for user than centralized platforms. Smart contracts control funding, payment and fine between borrower and lender.

The operations of asset custody, payment, deduction and penalty will be strictly implemented by smart contracts. Even if the website and APP goes wrong and their interface cannot be logged in, users could still rely on the private key, enjoy complete control of their assets.

The Force Protocol is working towards the realization of this scenario. Users control their assets totally by private key, no matter whether they can or cannot log in their account of website and APPs, with private key in hand, your assets are fully secured by blockchain itself.

We argue that ordinary users should take service cost into consideration before they take steps to current cryptocurrency lending platforms. In additional, users must follow the loan agreement of different platforms strictly and manage their investment carefully in order to control risks from platforms.

Primary aim of The Force Protocol is to eliminate the risk of centralized platforms and reduce the friction cost of loan service in crypto-assets.

To provide a safer and better peer-to-peer crypto-asset loan service, we are hard working. May the force to be with you in near future.

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