As of 2017 there were approximately $14.4 billion credit cards in circulation globally.
The demand for consumer credit is huge. And because of the higher than average returns available, it is one in which many investors are interested.
In the past one of the biggest challenges for investors looking to lend capital within the consumer credit market has been liquidity.
Unlike say investing in stocks, bonds or options the ability to exit an investment outside of the fixed period of the loan is usually challenging.
That may soon change thanks to GN Compass.
GN Compass is a peer to peer lending platform which enables cryptocurrency backed loans.
Using the platform investors are able to lend funds through a pool. These funds will then be lent out at set interest rates which vary depending on the credit profile o the borrower. The principal that is invested into the loan pool is backed by Compass Tokens (GNCT) which are GN Compass native cryptographic token.
Borrowers repay the amount that they have borrowed plus the interest to the lenders. The entire process is recorded on a blockchain providing complete transparency for all of the participants.
How Borrower Pools Work
The interest that investors will be able to make from lending will depend on the amount that a particular pool is backed by GNCT tokens and the credit profile of the borrowers.
A+ Rating with 100% GNCT Backed: This pool would provide returns of 3.99 – 4.99%.
B Rating with 80% GNCT Backed: This pool would provide returns of 8.99 – 9.99%.
D Rating with No GNCT Backing: This pool would provide returns of between 15.99 – 16.99%.
As you can see lenders will be able to evaluate the risk that they are willing to take with the loans versus the interest rate that they would like to earn.
Collateral For GNCT Tokens
Because GNCT is backing the principal of the loans that are being made it is important to evaluate the security of the GNCT tokens. Both GN Compass and GNCT are backed by a $140 million collateral bond. The idea behind the bond is to protect against price volatility in the GNCT token.
GNCT Token Sale
GNCT is going to be offered through a token sale. In total 1 billion GNCT tokens are being created. GNCT tokens will be offered at a price of 1 GNCT is equal to $0.30.
GN Compass Website: https://www.gncompass.com/
GN Compass Whitepaper: https://www.gncompass.com/wp-content/uploads/2018/03/GN-Compass-whitepaper.pdf
GN Compass Bitcointalk ANN: https://bitcointalk.org/index.php?topic=2686381.0
GN Compass Twitter: https://twitter.com/GN_Compass
GN Compass Facebook: https://www.facebook.com/GN-Compass-305175569888932/