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Credit Liquidity Pools

At the heart of Webtransfer’s decentralized credit network lie credit liquidity pools — smart contracts that pool cryptocurrency funds provided by participants to finance P2P loans. Pools vary in the type of collateral accepted and the associated level of risk:

  • Secured pools: Loans are issued against the collateral of cryptocurrencies, stablecoins, NFTs, and other digital assets. The lower risk level and interest rates make these pools more attractive for creditors looking for more stable and secure investments.
  • Unsecured pools: Loans are issued based on the social credit scoring of participants without tangible collateral. The increased risk is accompanied by higher rates, which can offer higher returns for creditors willing to take on this risk.
  • Mixed pools: A combination of secured and unsecured loans with varying risk and return ratios. Mixed pools allow participants to diversify their investments within a single pool, balancing between risk and potential profit.

Participants in the credit pool receive interest from the loans issued, proportional to their contributed share of liquidity.

Mechanism for Pool Yield Formation

The profitability of credit liquidity pools in Webtransfer is determined by the dynamics of supply and demand on the platform. Interest rates on loans are adjusted in real time, reflecting the current balance between borrower needs and creditor willingness to provide funds. This creates a natural regulation mechanism that promotes optimal resource allocation and provides competitive conditions for all network participants.

Participants have the opportunity to choose pools with different levels of risk and potential return, allowing them to individually tailor their investment portfolio according to their preferences and financial goals. Thus, participants are not only able to manage their investments but also actively influence their potential profit by choosing between more conservative or risky lending strategies.

Additionally, the platform provides tools and analytics to assess the current market situation, helping participants make informed decisions and optimize their return while managing risks.

These mechanisms ensure that the credit liquidity pools in Webtransfer not only serve as an effective tool for financing loans but also provide participants with flexible opportunities for investing and earning income.

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