Cred’s second AMA was held in February and hosted by CEO and Co-Founder Dan Schatt. We have listed the top 10 highlights discussed during the live event below. If you think of any additional questions, hold on to them. Dan and the Cred team will be back for our next AMA on March 18, 2020. Keep checking our Telegram channel for updates and announcements.
Top 10 Highlights
Q: What are the biggest benefits of the Cred and Litecoin Foundation partnership?
A: There are many benefits for both Cred and Litecoin Foundation through our new partnership. Litecoin Foundation partnered with Cred to provide LTC holders with the ability to earn interest or borrow against their digital assets along. As with all partners, Cred also provides Litecoin Foundation with legal, regulatory, and technical support. Learn more about our Litecoin partnership here.
Q: How many digital assets does Cred support?
A: Cred now supports 30 crypto and fiat assets in over 190 countries.
Q: Have you considered migrating the LBA token away from ETH ERC20? Do the limitations of ERC20 give you any concerns?
A: Currently, over 99% of all LBA is in the form of ERC-20 and we plan for LBA to remain as an ERC-20. At this time, we don’t see an immediate need to change. More information on LBA Utility can be found here.
“Dan you and the team are doing a terrific job. I’m pledging more every month” – Cred Community Member
Q: Is there a program in place for immediate re-pledging?
A: Yes, this is a common question we are asked. Cred will be enabling the re-pledging of interest earnings over the next few weeks. Generally, over 80% of those who are using CredEarn are holding well beyond the initial 6 month period and re-enrolling. We are working on a plan to make it much easier for interest proceeds to be re-pledged.
Q: Have you ever rejected a new lender when they sign up for the CredEarn program?
A: As long as lenders pass our KYC protocol, they can freely use the Cred program. As a licensed financial services provider, we are required to do KYC on all of our users.
Q: Will instant re-investing apply to existing programs or only new programs?
A: Re-investing will be rolled out in phases. We’ll start with new programs and then transition into existing programs and re-enrollment as well.
Q: Is it problematic for an early adopter to join and potentially pledge 5000 BTC for 10% APR?
A: Great question! We have the ability to put several hundred million dollars to work at these rates and are continuing to open up more capacity on an ongoing basis. We are hearing from our customers that they would like to have additional fiat currencies supported, and we are working to make that happen. Additionally, we are also evaluating all top 50 currencies that we do not support.
Q: I want to lend Ethereum. Are there better rate options?
A: Cred currently offers up to 6% on Ethereum, which is much higher than most providers.
We will continue looking for efficiencies so we can give our users the highest interest possible. We also recently launched monthly interest payments on the most popular coins, which will allow our customers more flexibility in managing their holdings.
Q: If participants in the CredEarn program are being paid out their interest in LBA is this interest payment simply purchased at market rates on Uphold etc. or are coins being released from Creds LBA holdings to pay for the interest?
A: Great question. Every sweep period we have up to 30 different crypto and fiat assets coming in, and up to 30 different crypto and fiat assets going out (in the form of interest payments and principal payments). If we need to pay out more LBA than has come in, we will go into the market and purchase more.
Q: How much boom could Cred endure before the model broke? If crypto was to grow 10x or 100x, in a couple of months, do you have contingencies in place for this?
A: The future contracts on Bitmex and other highly liquid providers are solid, and require cash collateral. Aside from our 100% hedged position, we have reserves in place to support movements.
“I really appreciate the opportunity to connect with all of you, thank you for supporting Cred, and the whole team is committed to continuous improvement and taking your feedback seriously. March will also be a terrific month! All I can hint at — we will have fantastic new functionality coming, and some really exciting partners we’ll announce! In the meantime, please feel free to reach out to Cred Concierge with any additional questions you may have. Have a great month and we will be back in touch soon. Thanks again, everyone!”
– Dan Schatt, CEO and Co-Founder, Cred