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Litecoin Joins DeFi Race With Cred Partnership Enabling Loan Services

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Today, the Litecoin Foundation, the core developers behind the Litecoin network, has made an important announcement. The team has recently made a strategic partnership with Cred, a licensed crypto borrowing, and lending company based in San Francisco. This company holds over $300 million in lending capital and is set to propel Litecoin into the Decentralised Finance arena. As it stands now, Cred has been integrated into the Litecoin app, promising up to 10% in yearly interest for any staked funds.

Yearly Gain of 10% Of Initial Investment

Funding can be withdrawn from the stake at any point in time, with interest being paid monthly, which provides a 0.83% monthly interest rate. This interest rate counts for any amount of any form of funding staked into the service.

Dan Schatt, the founder and president of Cred, gave a few essential details about how Cred works. He explained that the interest gained doesn’t increase as funds within a staked account accumulates. To put it in perspective, if one pledges $100 in Litecoin, long enough that it turns into $1000, the interest this user will get will still be 10%, or $10, of the original $100 in Litecoin pledged, not the $1000. However, the reverse is also true. Should the value in Litecoin make that same investment worth $10 in total, the Cred firm will still pay you out your 10% of the $100 you invested.

Mutual Profits Assured

Schatt explained that his company had developed the system, handling all the fine details. Things like regulatory support, legal compliance, customer service support, as well as operational support, have all been done by Cred.

As it stands now, both firms are going to gain an advantage from the deal. Cred gets a broader audience to loan out its Litecoin contracts, with higher interest rates, pocketing the difference. The Litecoin Foundation receives a cut from the difference, making everyone a happy camper. This narrative is followed through with Schatt, explaining that “this is Litecoin’s application, and the proceeds of the application are used to support the Litecoin Foundation.”

Integration Business Strategy

Schatt was formerly operating within Paypal. Paypal itself managed to gain its fortune by acting as a go-between when it comes to payment plugins, allowing for companies to receive wireless transactions. Thus, Schatt believes that there is merit to integrating a product directly within the Litecoin Foundation wallet, as he has experience of its possible success.

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