Summary

Much of DeFi is highly correlated. When Bitcoin (BTC) prices move, the rest of the market typically follows, leading to unmanaged volatility and exposing portfolios to significant risk. Pursuing high DeFi yields through recent innovations often entails elevated levels of counterparty and protocol-level risks. Past events have shown that these risks can unravel, potentially causing substantial portfolio losses or even complete value loss. Retail investors, in particular, are often the most affected, either due to a lack of understanding of the underlying risks or a lack of visibility into them.

Institutional investors, being generally more sophisticated, tend to better appreciate and manage these risks. They often prioritize risk-adjusted returns, considering metrics such as Sharpe Ratio in their investment decisions. There is a growing appetite among institutional investors for uncorrelated fixed yields on-chain, as part of a balanced crypto portfolio.

In traditional finance (TradFi), private credit is the fastest-growing alternative asset class due to its consistent performance, both in absolute and risk-adjusted terms. It is characterized by low correlation to the broader market, short-term self-liquidating credit products, and low default rates. However, private credit is currently reserved exclusively for institutional and accredited investors and has been criticized for its opacity in asset deployment.

Credbull addresses these issues by bringing private credit high fixed yield solutions on-chain in a fully transparent and accessible manner. Credbull manages the first licensed on-chain private credit fund that emphasizes governance and transparency in strategy, risk management, and off-chain asset allocation.

Managed by experts with over 25 years of experience in TradFi and private credit, the Credbull On-Chain Private Credit Fund 1 eliminates high minimum investment barriers, offering no minimum investment requirement. It features two tenure options: a six-month term with an 8% Fixed APY with 20% upside participation based on its performance in fund performance, and a 12-month term with a 10% Fixed Yield with 30% upside participation in fund performance. With an asset allocation capacity exceeding US$500 million, the fund deploys capital to established SME Lending Originators who offer a variety of credit products to creditworthy Small & Medium Size Enterprises (SMEs). This generates substantial yield from a diversified portfolio of over a million creditworthy SME transactions annually, with a historical default rate of less than 2.0%.

Our distribution strategy is multifaceted, bridging gaps across fragmented liquidity with an EVM-chain agnostic approach. We deploy our DeFi vaults on multiple EVM chains, serving some of the largest communities in Web3. Additionally, we cater to diverse segments by deploying our products on RWA platforms, marketplaces, and B2B2C platforms, as well as directly to institutional and retail investors. In phase 2 our techstack will be permissionless whereby anyone or any entity from anywhere can build on top of our platform. Our broader strategy aims to expand the Web3 ecosystem by attracting new investors from TradFi, fostering transparency and access to private credit.

A critical aspect of our strategy is providing liquidity and composability to our products, allowing investors to draw leverage and transfer their ERC4626 Claim Tokens peer-to-peer within Credbull’s ecosystem. This requires collaboration with multiple parties, and we are committed to incorporating these features into our product roadmap.

Furthermore, Credbull is dedicated to building a robust and engaging community through our gamified app, inCredbull Earn. Users can participate in various investment-themed activities and be rewarded with our native $CBL token. The community will also engage in governance of the token ecosystem and participate in key platform features.

Credbull is committed to making private credit accessible and transparent, providing retail and institutional investors alike with high fixed yield solutions on-chain, ensuring robust risk management, and fostering a balanced and diversified crypto portfolio.