Understanding SmartFi Token and the value it holds

August 13, 2021

SmartFi is a unique cryptocurrency monetary system. It combines monetary policy with the freedoms of cryptocurrency to create self-sustaining open-lending platforms. The holders of SmartFi Token become the beneficiaries of the wealth creation that would otherwise accrue to traditional lenders like banks. Token holders also participate in the monetary policy that manages the system.

Owning SmartFi Token is better than owning a bank

To date, there hasn’t been a single cryptocurrency ecosystem that incorporates the necessary fundamentals for a complete free market economy. Most cryptocurrencies possess only the speculative or risk component. None of them provide an on-chain hedge or mechanism for economic safety. This results in unnecessary bear market volatility.

The SmartFi ecosystem uses a “hedge first price speculation second” approach which produces the balance of two maximalist tokens, one for hedging and the other for speculation. The SMTF hedge is created by directly indexing the token to the loan portfolio. 

With this hedge (safety) first balance design SmartFi can offer a guarantee for those who buy SMTF directly from the token supply on the SmartPortal. Any SMTF token buyer on SmartTrade can return the token any time after 1 year, for any reason, for full refund of the purchase price in US dollars or SFUSD.

The SMTF token price fundamentals are directly linked or indexed to the demand for loans on the SmartCycle. As the demand for loans increases, more tokens are issued through a scheduled fixed supply and subsequently the price increases on the SmartCycle. This creates credit and assets like a loanable funds model used in private banking and lending. The token purchasers are then able to freely trade SMTF, without a lock up period, in the secondary market. Indexing the loans this way also creates a market based forward price curve to give traders an indication of future value. 

SmartFi Token Supply and Issuance

The SMTF token is governed by a decentralized monetary policy that means tokens will only become available as we receive more demand for loans. As the platform grows the value of the token accrues giving the SmartFi token price discovery and value based on fundamentals.

The SMTF Token is issued through the SmartCycle tool on the SmartPortal. SmartCycle triggers the release of tokens, when there’s new demand for loans. This creates a balance between the market supply and demand for capital. SmartFi unleashes the true potential of cryptocurrencies balancing the market supply and demand for capital.

To begin, a limited supply of 7,000,000 tokens are available at a cost of $0.70 per token. Each subsequent cycle will be at an increased price, for example cycle two will be at a price of $1.29. The index price does not allow the token to be sold at a price lower than the previous SmartCycle.

Token Essentials

SmartFi tokens sold through the SmartCycle are immediately liquid with no lockups, no vesting and no cliffs. And it’s a fair launch. Equal access for everybody from day one of the sale. And get this: The SmartFi token comes with a 100% buy-back guarantee for tokens distributed via the SmartCycle tool. Because of Smartfi token’s unique relationship to the loan demand on our open lending platform, we’ll buy back your token at the price you paid, for any reason under the sun, if you are unhappy after 1 year. To be clear, that’s a full refund of the purchase price in US dollars or the SmartFi stablecoin (SFUSD). 

Forward price curve and price discovery data is available on the SmartFi tokenomics page.

Even more reasons to get involved

SMTF token holders receive a variety of benefits and rewards for trading, lending and borrowing. Holding SMTF entitles the user to exciting rewards and discounts on our SmartPortal and SmartDex. By purchasing and depositing SMTF in your SmartWallet, you will acquire rewards based on your SmartLevel. Your SmartLevel is calculated based on your SMTF ratio – The percentage of SMTF tokens in your SmartWallet divided by the Total Digital Assets deposited.

A customer can attain 4 loyalty tiers (Level 1 – Smart, Level 2 – Bright, Level 3 – Brilliant, and Level 4 – Genius) each having incremental benefits in the form of additional interest on their deposits, discounts on their loan interest rate, and refunds on trading fees incurred on the SmartExchange.

In acting, the SmartFi monetary policy is a collaboration of SMTF holder voting and SmartFi administering the tools with a singular goal to support and increase the value of the SMTF tokens. As the value of SMTF token is tied to the health of the SmartFi network, everyone is incentivized to act in good faith to ensure the prosperity of the network.

SmartFi, as an entity, does not receive profit from interest revenues - its financial profits come from the value increase of its SMTF holdings. SmartFi as a company, will receive 200 million SMTF to hold in lieu of profits. This incentivizes SmartFi and its employees to work towards increasing the value of SMTF. 

SmartFi does collect the interest payments from the SmartLoans and has the option to use up to 80% of this cash flow to pay for operating expenses or pay those expenses from its SMTF holdings. SmartFi’s financial motivations are to make SMTF as valuable as possible and will inform SmartFi’s options to best meet that objective. SmartFi has a trade desk that manages all liquidity for the SmartFi products and its mandate is to maximize trading opportunities and the value of SMTF.

Sign up on the SmartPortal to purchase SMTF to Grow your wealth and secure your future.


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