Connect Financial Community Update
General development update
Development on the initial release continues to progress rapidly. As we move closer to a release date, the team is spending more time in unknown territory as we test, iterate and bug hunt. This can feel like a laborious process at times, but is absolutely critical in order to deliver a platform that meets our stringent security and high user experience standards.
In addition to the development and delivery of the core platform, we are also working very closely with our processing, liquidity, exchange, banking and markets teams to align all of the the planets required for the launch of a successful product.
Product Update: Fixed Loans
Although the lion’s share of the questions we get asked are variations on “when card?”, it’s important to remember that credit cards are just one of the core products in the Connect Financial ecosystem of products. With this in mind, this update I want to take a closer look at the Fixed Loan product that is in our current development pipeline and is on target to be included in our initial launch this year.
Fixed loans work similarly to the credit card product, with the key difference being that your collateral supplies a one-off fixed payment of a stable asset rather than accessing a line of credit. While similar in nature, the two products offer different use cases. Especially with regards to the infrequent purchase of big ticket items, fixed loans are almost always going to be preferred over using a credit card.
Fixed Loans are designed to be an incredibly flexible product. When you create your loan, you can tailor the amount of collateral you want to supply through the loan-to-value ratio, how long you want to take the loan out for and your repayment schedule.
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By choosing to commit more collateral in relation to your loan amount, you effectively choose your own interest rate. Base interest rates range from 11.95% down to as low as 5% depending on the LTV for loans over 1 year in duration. You can further reduce your interest rate by holding a Connect Financial membership, with discounts ranging from 25 to 100 basis points.
In addition to choosing your interest rate, you can also choose how you want to repay your loan. For short loans of less than 1 year, you will pay an upfront loan origination fee and then accrue no interest over the period of the loan. Pay it back however you want, including using your collateral to make payments.
For loans over 1 year in duration, you can choose to pay your loan off in full, or make a lower monthly payment and make a larger payment at the end of your loan term to release your collateral. You can even choose to make interest only payments each month, depending on how you intend to use your loan proceeds.
Your loan proceeds are paid instantly into your default transaction account in USD (or your default currency), where you can choose to swap it to crypto, send off-platform or withdraw fiat into your bank account.
You can track transactions, make payments, and periodically rebalance your collateral through a dedicated loan wallet in the portal.
The team is excited about the potential of the fixed loan product as a way to augment the line of credit offerings and expand our product suite and offer more options to our members.
As mentioned in the last update, we’ve been conducting some housekeeping regarding the token supply. As part of that activity, some small adjustments have been made to the project tokenomics to ensure sufficient market liquidity and to allocate a dedicated tranche of tokens for sale exclusively on the portal.
The majority of the shifts that have been made were reducing some of the discretionary token supplies and then those tokens were transferred to the Client Portal Pool.
Out of the 108,500,00 supply we are still sitting at 25,000,000 in Total Circulation. The 20,000,000 in Circulation and 5,000,000 from the Market Liquidity Tranche.
The tokenomics and supply schedule will be updated into the official articles and white paper shortly.
As always we thank you for being part of this journey with us as we create something truly unique and exciting for the Crypto space.
Until next time!