🤑Earn on DecentraCredit

DecentraCredit offers multiple avenues for users to earn. Even non-users can earn!

How Does a Lender Earn

The Lender can earn revenue on the system in 3 different ways. Let us explain each in details.

1. By Lending: This is definitely the most obvious way where the Lender can lend his funds (secured against collateral) and earn interest.

How much he earns is completely up to him as the more fund he lends the higher are his returns and he alone gets to set the rate of interest.

It is worth mentioning that 100% of interests earned goes to the Lender and the system doesn't take anything.

But what if he has added funds and nobody has borrowed from him. That brings us to the 2nd mode of earning for a Lender.

2. Idle Funds Reward: When Lenders add funds to the system, intended for Lending to borrowers, they stay in the system before someone actually borrows it.

As interests starts accumulating only after someone has actually borrowed from a Lender, this idle fund doesn't earn interest.

However, to make things more enticing to lenders and to make it worthwhile for Lenders to add funds to the system, the system distributes 15% of platform revenue to these idle funds.

Thus, even before someone borrows from the Lender, he starts earning.

Two things to remember here, i) The idle fund distribution stops for a lender when his funds are actually borrowed, and ii) the rate of return for idle funds will be significantly lower compared to interest rates. The latter ensures that Lenders’ sole aim isn't getting the idle funds reward. Why so? Because if the idle funds reward is too high, the lenders might set up impractical terms for Borrow because He is earning more by keeping his funds idle. That hurts the purpose of the platform and not desirable at all.

To clarify, when a Lender’s fund has been partially borrowed (i.e., he has deposited 1000 USD and Borrowers have only taken 500 USD loan from it), the remaining idle fund earns Idle Funds Reward while the other part earns interest as set by the Lender.

3. DCT Staking: Decentra Credit Token ($DCT), while not exactly a Dividend Bearing Equity Stock, resembles the same very closely, for every purpose.

The charges DecentraCredit system accumulates are distributed among the $DCT holders as per their holding. This is done using farms where users need to deposit their $DCT. 80% of the platform revenue are distributed to $DCT holders while the remaining 15% goes to #2 mentioned above & 5% goes to Emergency Fund.

How Does a Borrower Earn

Obviously, the options are much less for a borrower to earn.

He can utilise the 3rd option mentioned above and earn. This might help him battle the interests he is bearing and/or help him repay the loan more easily.

I am not a Lender or Borrower. How do I earn?

By following the 3rd option as mentioned above.