In an era of economic turbulence and uncertainty, access to credit may be out of reach for many people. From bad credit ratings to a lack of equity, there are numerous reasons that could prevent an individual from obtaining a loan. But, what if that were to change? In an age where cryptocurrency is widely regarded as a sound financial investment, it could be that the contents of your portfolio are the means by which you attain credit.
Connect Financial proposes a 21st Century solution to an age-old problem. The idea is to empower customers to obtain credit in the form of an international Visa card, by allowing the ADA they hold to be used as collateral, without the need to liquidate any of their physical assets.This revolutionary approach would not only be a step towards a new way of obtaining credit, but may very well end up shaking the current legacy systems to their core, a process long overdue.
So How Does it Work?
Talk is cheap, and while many blockchain projects boldly discuss the science behind their technology, it’s evident at this point that Cardano has set the standard. In terms of constructing a fully decentralized, proof of stake blockchain, nothing else comes close. This fact has not gone unnoticed by Connect Financial, and with the release of Goguen smart contracts, the utility and versatility on offer is endless.
Cardano is renowned for its community spirit, a self nourishing ecosystem with faith in its own success, bound by the desire to create a better world. This is evidenced by the amount of ADA currently held in stake pools, which rests at approximately 73% of total circulating supply at the time of writing. With that said, Connect Financial also has a loyal following, a substantial amount of which is rooted in the Ethereum network, and the over priced gas fees that comes with it. As it currently stands, the cost to redeem, stake and un-stake CNFI on Ethereum ranges between $40 and $300 USD, depending on gas fees at the time. Who on earth is in a position to play financial Russian Roulette to this degree? Which has left many existing Connect Financial members looking for alternative solutions, and rightly so.
Who is Connect Financial?
Connect Financial was founded by a small, passionate team with decades of experience in the financial industry. As well as being corporate veterans, they are also cryptocurrency pioneers, driving innovation in the industry since 2013. They recognized the need for crypto to advance from just an investment vehicle to leverage its value in daily lives. Bringing the world’s first true crypto credit card to market is just one of the innovative products in their product ecosystem.
The Idea to Migrate is Simple
Members of the project will be offered an IBAN (International Bank Account Number) and account funding is available via traditional SWIFT, SEPA, and wire transfers, as well as by standard crypto methods. This is all managed and monitored through a detailed Client Portal. Connect Financial will then provide its members with an International VISA Credit Card for daily use, essentially world-wide.
Credit is then allocated to each member based on the type and amount of collateral held in their Connect Financial wallet.
Each user’s credit limit is determined as a percentage of collateralized assets and not by a credit score, as is the case with legacy systems. Users can choose to pay their balance and interest using a variety of methods including fiat transfers or crypto, providing them with a level of freedom and choice historically absent from the current system of financial bondage.
Connect Financial offers five different credit card levels. Each type/tier offers a slightly different Credit Card and associated benefits:
Basic – No staking required, 1.5% fee Crypto to Fiat conversion, 11.40% APR on credit used, up to 6% yield APY on stable coins and fiat holdings.
Silver – 5000 CNFI staked, 1.30% Crypto to Fiat conversion fee, 10.90% APR on credit used, up to 8% yield APY on stable coins and fiat holdings.
Gold – 20,000 CNFI staked, 1% Crypto to Fiat conversion fee, 9.90% APR on credit used, up to 9% yield APY on stable coins and fiat holdings,
Platinum – 100,000 CNFI staked, .75% Crypto to Fiat conversion, 8.90% APR on credit used, up to 10% yield APY on stable coins and fiat holdings,
Black – 200,000 CNFI staked, .5% Crypto to Fiat conversion, 7.90% APR on credit used, up to 12% yield APY on stable coins and fiat holdings.
The price Tag?
The team is looking for $70,000 USD to fund their proposal. This will go towards hiring an IOHK Lead and DevOps Engineer, which will allow for the bridging of the ADA staking network, treasury and yield protocols. In turn, this funding will provide the proper foundation to facilitate a full integration of Cardano, along with any accompanying future native tokens, defi networks or exchanges into the Connect Financial platform. They’re seeking six months full time salary wages for the hired candidate, with the goal of completing the bridging by the end of Q1 2022. The said candidate’s employment would then continue with the Connect Financial team as required, after implementing the proposed tasks
“The goal is to become cross-chain interoperable with the Cardano ecosystem. We currently have 25,000,000 CNFI (ERC-20) tokens unlocked on the Ethereum Blockchain with a total supply of 108,500,000.”
Credit Where Credit’s Due
Although currently classified as an asset, crypto holdings typically can’t be leveraged, in the same way that traditional assets can. However, Connect Financial has decades of experience in financial technology, as well as international banking and compliance industries. They’ve been preparing all the legal compliance and network approvals required to bring their product to market, since 2019. Their partners and advisers boast extensive experience, from blue chip organisations and financial institutions alike. Think of it like this. They’re not merely a crypto-backed credit card, they are a place to buy, sell, borrow, lend, store, convert and swap crypto. Having positioned themselves as a viable option for the under-marketed, and the unbanked, as well as those ready to say goodbye to traditional corporate services, this may well prove to be the new way lending is done.
If you’d like to know more information or have questions/comments regarding Connect Financial proposal, check out the link provided: https://cardano.ideascale.com/a/dtd/Cardano-Credit-Card/366967-48088