Creditum: A Collateral-Backed Stablecoin Lending Protocol

Creditum Project Introduction

Hello friends! Today, let’s talk about a blockchain project called Creditum, abbreviated as CREDIT. Imagine you own some assets, such as cryptocurrencies, but you don’t want to sell them directly because you believe they’ll appreciate in the future, yet you urgently need cash now—what should you do? Creditum acts like a digital “pawnshop” or “bank” in the crypto world, helping you solve this problem.

What is Creditum

Creditum is a decentralized lending protocol built on the Fantom blockchain. Simply put, it allows users to collateralize their crypto assets and then mint (i.e., generate) a stablecoin called cUSD. cUSD is a digital currency pegged to the US dollar, aiming to maintain a 1:1 value with the dollar. This way, you can keep your original assets while gaining liquidity (i.e., usable funds), which you can then use for other investments or anything else you wish.

Core Scenarios:

• Collateralized Lending: Users can deposit supported crypto assets (such as USDC, DAI stablecoins, or even yield-bearing assets like Yearn Finance’s yvUSDC/yvDAI) as collateral on the Creditum platform.
• Minting cUSD: After collateralizing, users can mint cUSD according to a certain collateralization ratio. This cUSD is like a loan from a bank, except it’s digital and its value is stable.
• Earning Yield: The minted cUSD can be used to earn yield in other DeFi (decentralized finance) protocols, or for trading, payments, etc.

Stablecoin: A stablecoin is a cryptocurrency whose value is pegged to a “stable” asset (such as the US dollar or gold), designed to reduce price volatility. cUSD is a stablecoin pegged to the US dollar.

Project Vision and Value Proposition

Creditum’s core vision is to provide a functional native stablecoin cUSD for the Fantom network, and to ensure its stability through a new liquidation model, replacing the legacy fUSD on Fantom. Its value proposition lies in enabling users to unlock the liquidity of their crypto assets without selling them, and to use the minted stablecoin cUSD to create more value.

Compared to traditional finance, the advantages of decentralized lending protocols like Creditum include:

• Permissionless: Anyone can participate, with no centralized institution for approval.
• Transparency: All transactions and rules are recorded on the blockchain and are publicly accessible.
• Efficiency: The lending process is automatically executed by smart contracts, eliminating intermediaries.

Smart Contract: A smart contract is a computer program stored on the blockchain that automatically executes agreements when preset conditions are met. It’s like a self-executing digital contract.

Technical Features

As a decentralized lending protocol, Creditum’s technical core revolves around the following points:

• Based on Fantom Blockchain: Creditum runs on the Fantom network, benefiting from Fantom’s fast transaction speeds and low fees.
• Collateralized Minting Mechanism: Users mint cUSD through over-collateralization (i.e., the value of the collateral exceeds the value of the minted cUSD). This mechanism is common among decentralized stablecoins and aims to ensure the stablecoin’s value.
• Liquidation Mechanism: To maintain cUSD’s value stability, when the collateral value drops below a certain threshold and is insufficient to cover the borrowed cUSD, the system automatically triggers liquidation, selling part of the collateral to repay the debt and ensure the protocol’s solvency.
• Arbitrage Mechanism to Maintain Stablecoin Peg: If cUSD’s price deviates from $1, market participants can arbitrage to help it return to the peg. For example, if cUSD drops to $0.9, users can buy cUSD at $0.9 and redeem equivalent collateral at $1 in the protocol, profiting and pushing cUSD’s price back up.

Fantom: A high-performance blockchain platform known for its speed, scalability, and security, especially suitable for DeFi applications.

Tokenomics

The Creditum project has its own native token, called CREDIT.

• Token Symbol: CREDIT
• Issuing Chain: Fantom network
• Total and Maximum Supply: 50,000,000 CREDIT.
• Current Circulating Supply: According to CoinMarketCap, the self-reported circulating supply is currently 0 CREDIT, which means it may not be widely circulating yet or the data is unverified.
• Token Utility: While specific details are not fully disclosed, typically governance tokens (like CREDIT) in such protocols are used for:
  • Governance: Holders can vote on the protocol’s future development, parameter adjustments (such as collateral ratios, fees, etc.).
  • Incentives: May be used to reward liquidity providers and protocol participants.

Details on CREDIT token inflation/burn mechanisms, specific allocation and unlocking information are not provided in public sources and require further review of official documentation.

Team, Governance, and Funding

There is limited publicly available detailed information regarding Creditum’s core team members, specific governance mechanisms, and funding status.

It is noteworthy that information suggests Creditum’s development team previously led another Fantom project, StakeSteak, which suffered a vulnerability attack. Understanding the team’s past experience and crisis management is important for assessing the project’s risk and potential.

Decentralized Autonomous Organization (DAO): Many blockchain projects adopt the DAO model for governance, allowing community members to collectively decide the project’s direction via smart contracts and token voting, rather than centralized team control.

Roadmap

No detailed roadmap for Creditum, including historical milestones and future plans, has been found in public sources. Typically, a project’s roadmap shows its development stages, feature release plans, technical upgrades, etc.

Common Risk Reminders

Participating in any blockchain project involves risks, and Creditum is no exception. Here are some common risk points:

• Technical and Security Risks:
  • Smart Contract Vulnerabilities: Even after audits, smart contracts may have undiscovered vulnerabilities that could lead to loss of funds.
  • Liquidation Risk: If collateral prices fluctuate sharply and the collateralization ratio is too low, users’ collateral may be liquidated, resulting in losses.
  • Oracle Risk: The protocol relies on external oracles for asset prices; inaccurate or manipulated oracle data may cause protocol issues.
• Economic Risks:
  • Stablecoin Depeg Risk: Although cUSD aims to be pegged to the dollar, under extreme market conditions, the stablecoin may temporarily or permanently depeg, causing value loss.
  • CREDIT Token Price Volatility: CREDIT’s price is affected by market supply and demand and may fluctuate sharply, posing investment risks.
  • Liquidity Risk: If there is insufficient market demand for cUSD or CREDIT, users may have difficulty buying or selling at ideal prices.
• Compliance and Operational Risks:
  • Regulatory Uncertainty: Global regulatory policies for cryptocurrencies and DeFi are still evolving, and future policy changes may impact project operations.
  • Team Background: The team’s previous project experienced a vulnerability attack, reminding users to remain vigilant about security and to observe how the team learns and improves from past experiences.

Not Investment Advice: Please note, the above information is for project introduction only and does not constitute investment advice. Before making any investment decisions, be sure to conduct thorough personal research (DYOR - Do Your Own Research) and consider your own risk tolerance.

Verification Checklist

Here are some aspects you can verify and research further yourself:

• Block Explorer Contract Address:
  • Creditum contract address:
    0x7712...872B5E
    (on Fantom network). You can view contract transaction records and activity via block explorers like FantomScan.
• GitHub Activity: Check if the project has a public GitHub repository and observe code update frequency and community contributions, which reflect development activity.
• Official Website and Documentation: Visit the project’s official website (revenant.finance) and GitBook documentation (creditum-1.gitbook.io/creditum/) for the latest and most detailed information.
• Audit Reports: Look for third-party security audits; audit reports can assess smart contract security.
• Community Activity: Follow the project’s social media, forums, etc., to understand community discussions and project progress.

Project Summary

Creditum is a decentralized lending protocol running on the Fantom blockchain, with its core function allowing users to mint US dollar-pegged stablecoin cUSD by collateralizing crypto assets. This mechanism is designed to help users obtain liquidity and participate in the broader DeFi ecosystem without giving up ownership of their original assets. cUSD’s stability is maintained through over-collateralization and market arbitrage mechanisms. The project has a native token, CREDIT, with a total supply of 50 million.

However, detailed information on the project’s vision, technical architecture, tokenomics (except supply), team members, governance model, and roadmap is relatively limited in public sources. Additionally, the team’s past experience reminds us that it’s important to thoroughly assess potential technical, economic, and operational risks when participating in such projects.

Overall, Creditum provides a solution for unlocking asset liquidity within the Fantom ecosystem, but as a user, it’s crucial to research its mechanisms, risks, and team background in depth. For more details, be sure to do your own research.