#1 BASIC Finance — Introduction

An Introduction to BASIC Platform

BASIC is the next-generation crypto finance platform that allows lenders and borrowers from all over the world to better manage their crypto assets with enhanced capital efficiency. In today’s post, we are introducing BASIC Platform. You will be able to have an overview of the BASIC platform alongwith a short introduction to its functionalities, which we will elaborate in subsequent posts.

Crypto Loans — Current Status

Loan or credit is a critical aspect of any financial industry. The same is increasingly observed in the cryptocurrency industry as well. Many banks in the conventional finance industry, despite record-low interest rates, are not experiencing much growth in terms of loan disbursement amounts.

Since its launch in early 2018, collateralized crypto asset loan services have been actively growing in the US and Europe. Many investors are also considering cryptocurrency based loan services as an alternative investment option. For example, investors holding cryptocurrency may leverage keeping intial amount as collateral to increase returns.

The crypto finance industry is largely categorized into two sections viz. Centralized Finance (CeFi) and Decentralized Finance (DeFi). CeFi is a centralized system, in which a centralized entity like conventional banks manage the ledger. In the case of DeFi, the main difference is that the managed assets are crypto assets such as cryptocurrency. On the other hand, DeFi is a decentralized system, in which the blockchain is used to record transactions on a decentralized ledger and smart contracts are used to facilitate transactions.

Comparison: CeFi Vs DeFi

BASIC Platform — Introduction

BASIC is the next-generation crypto finance platform that allows lenders and borrowers from all over the world to better manage their crypto assets with enhanced capital efficiency. BASIC utilizes monitoring of Loan-to-Value through smart contracts, rewards, BASIC Credit Rating System (BCRS) and much more to improve automation and transparency of its ecosystem. Unlike existing credit institutions, BASIC’s unsecured credit-based loans allow crypto finance platforms to exchange credit information freely, thus enhancing efficiency.

There are two tokens on the BASIC platform: BASIC and CREDIT token. Only BASIC token can be traded on exchanges while the CREDIT token is solely used for assessing a user’s credit. Both tokens are used as a utility to various products on the platform.

BASIC has formed multiple partnerships and alliances within Asia, where loan services are not fully established. BASIC will integrate its services with popular social media messengers & platforms and exchanges in Asia widely used by its target customers. By doing so, BASIC will not only gradually increase its borrower/lender base in Asia but also form partnerships with lending SPV (special-purpose-vehicle) and funds to create a widely used lending pool.