The Creditcoin Foundation wants to create a better future for finance based on the Open Finance Ecosystem’s fundamentals of openness, transparency, and accessibility for all.
To take things forward, CreditCoin collaborates with Arkadiko. The Creditcoin Foundation will collaborate with Arkadiko to connect the OpenFi Ecosystem with their unique USDA stablecoin, which is native to the Stacks protocol.
The Creditcoin Foundation is enabling new OpenFi liquidity pools for emerging-market capital rising by integrating USDA while also providing Stacks investors with unprecedented access to real-world credit investment opportunities in Africa and beyond, all with the goal of increasing financial inclusion.
The Creditcoin ecosystem is tied to Stacks over the financial level through merging with Arkadiko. USDA users can join the OpenFi ecosystem without ever leaving their Stacks blockchain. Creditcoin users can also use USDA to issue loans by supporting Arkadiko on the protocol level. As a result, complete loan transactions can now be linked with the secure blockchain. Creditcoin is currently the L1 blockchain that is designed for recording credit transactions, thereby providing a public ledger of a credit history that would allow the coming generation of interoperable cross-chain credit markets. Based on the principles of Open Finance, Creditcoin arranges capital financing, develops credit history, and facilitates trust for millions of underserved financial clients and businesses.
Arkadiko and Creditcoin accomplish this by utilizing the USDA stablecoin and self-repaying loans that can further help in providing credit to a new group of African customers. Lenders will have additional USDA yield options through the interface, in addition to the normal PoX yield. Lenders can contribute to financial inclusion and help African borrowers have a better future by enabling an open and transparent lending market.
Arkadiko is a non-custodial, decentralized liquidity protocol based on the Stacks blockchain that enables Bitcoin smart contracts. Users can use their assets as collateral to create a stablecoin called USDA. Depositors can get more liquidity in the form of a soft-pegged US Dollar stablecoin while keeping their original asset exposure.
A self-repaying loan is created using PoX (Proof of Transfer) yield from an STX-collateralized vault that mints USDA. By allowing the STX and xBTC assets to be used in a collateralized debt position, Arkadiko improves its capital efficiency. On Stacks, USDA is currently accepted in all main DeFi protocols.