This is our lecture at HWZ Zürich - Deep Dive Blockchain Vertical Use Case. It's about SmartCredit.io: - P2P lending on marketplace - Credit tokenization - Credit protection - Credit transferability About SmartCredit.io: Web Site: https://smartcredit.io LinkedIn: https://www.linkedin.com/company/smartcredit-io/ Blog (first articles from Jan 2014): https://smartcredit.io/blog Telegram: https://t.me/joinchat/F5I6KBCZT-z0hLERNG5SMg Youtube: https://www.youtube.com/channel/UCBhZiej6Yw-ENAswR3ImjBg Instagram: https://www.instagram.com/smartcredit_io/ Twitter: https://twitter.com/Smartcredit_io FaceBook: https://www.facebook.com/smartcredit.io/ Tenor: https://tenor.com/users/smartcredit Meetup: https://www.meetup.com/SmartCredit-io-Meetup-Group

1. Credit Money for the Crypto Sphere
Martin Ploom, CEO & Co-Founder,
Lecture at Hochschule für Wirtschaft Zürich, https://fh-hwz.ch/produkt/cas-blockchain-economy/
23rd of April 2019

2. For 5000 years, societies have been.
built on credit.
Today, over 85%.
of global spend.
is on credit.

3. of global spend is credit
85%>

4. We are the team
building the credit
money system for
the crypto world.
Martin Ploom,
CEO
Former VP of Credit
Suisse, built 3 AI-
based products,3
masters degrees +
MBA + CFA III
Tarmo Ploom,
CTO
Credit Suisse,
Distinguished IT
Architect (OpenGroup),
3 masters degrees +
PhD + MBA + CFA +
CAIA
Daniel Burgwinkel, Ph.D
Former dept head for Credit Suisse,
wrote thesis on digital contracts & law
before bitcoin whitepaper.
Walter Dettling, Ph.D
Professor of financial mathematics &
blockchain at the University of Applied
Sciences in Basel.
Nick Genko
CTO of LoyaltyCoin, founded first crypto
consulting firm.
50+ years building enterprise apps.
50+ years in banking.
30+ years in blockchain.
20+ years in credit lending.
6 employees.
4 PhDs.
2 CFAs.
John Matonis
Founding director of the Bitcoin
Foundation.
Norbert Perrot
Head of Credit Risk for the biggest
consumer lending bank in
Switzerland.

5. SmartCredit.io – Credit Money for Crypto Sphere
1. What is Credit Money?
2. SmartCredit.io
3. Demo

6. But where is.
the credit money.
in the crypto sphere?.

7. How does a monetary system work?
Base Money
Credit Money
In current system: 3% - 7% In current system: 93% - 97%

8. How is credit money created / destroyed today?
Credit Money Destruction:
Loan is paid back
Credit Money Creation:
Loan to the applicant

9. What do commercial banks do in lending ?
Create / Destroy Credit Money
Protect created money with reserves
Credit Ratings for every client
Legal Enforcement if non-performing loans

10. Credit Money in our current Fiat System
Monetary base in
U.S. created by the
U.S. Fed:
USD 3.6 trillion
Total commercial
bank created
central
credit-
money:
USD 75 trillion
Fiat World (USD)
Monetary base in
EU, created by ECB
EUR 4.5 trillion
Total commercial
bank created
central
credit-
money:
EUR 50 trillion
Fiat World (EUR)
Exchange
1944 – now

11. How did it worked before the age of fiat money ?
Central bank
creates gold backed
national base
money
Gold
Commercial banks
create their own
credit money
Commercial banks
create their own
credit money
Central bank
creates gold backed
national base
money
Nation 1 Nation 2
1660 – 1939

12. How did it worked before the commercial banks?
Souvereign created
money (coins)
Decentrally
created
credit money
Souvereign created
money (coins)
Decentrally
created
credit money
Nation 1 Nation 2
Exchange
500 B.C. – 1660

13. How was it before sovereigns created base money?
Commodity
(Gold, Silver,
Wheat, ...)
Decentrally
created
credit money
Commodity
(Gold, Silver,
Wheet, ...)
Decentrally
created
credit money
Nation 1 Nation 2
Exchange
2500 B.C. – 500 B.C.

14. Last 5’000 years we had credit money ...
BTC, ETH, LTC ...
?
Crypto World
Base Money
Credit Money
This time is different ?
Last 5’000 years

15. Why do we need credit money (1) ?
Economical activities need:
1. Labour, which need to be financed
2. Commodities, which need to financed
3. Energy, which needs to financed
4. Time, which needs to be financed
Time
Cash Flow

16. Why do we need credit money (2) ?
Step
A
Step B Step C
B1 B2 C1 C2
Producer
1st Level
Suppliers
2nd Level
Suppliers
Demand for
credit

17. Credit Money is one of humanity’s key innovations
Pulsating credit money supply
– it goes up with the economic activity
– It declines if no economic activitiy
Base Money

18. Does Crypto Sphere have Credit Money ?
• Bitcoin, ETH, LTC, ... are «base money»
• Elastic credit money supply is missing ...

19. Borrower Lender
Bill of
exchange
Money
3rd Party
Pay with
Bill of
Excange
4th Party
Pay with
Bill of
Exchange
Borrower pays the Owner
of bill of exchange
How does decentral credit money work today (1)

20. Borrower
B1
Lender L1
Money
3rd Party
Pay with
Bill of
Exchange
4th Party
Pay with
Bill of
Exchange
Borrower
B2
Lender L2
Borrower
B3
Lender L3
Bill of Exchange
Money
5th Party
Pay with
Bill of
Excange
Pay with
Bill of
Exchange
Pay with
Bill of
Exchange
Money
6th Party
Pay with
Bill of
Exchange
How does decentral credit system work today (2)
Money
Bill of Exchange
Money

21. Monetary systems classification
Credit Money
Base Money
De-centrally
created credit
money
Centrally created
credit money
Commodity based
base money
Fiat / sovereign
coins based base
money
Our current fiat
monetary system
Hanseatic Network
Mesopotamia 5’000 years
ago
Bitcoin, ETH, LTC, ….
No credit money

22. Where is the crypto credit money ?
Credit Money
Base Money
De-centrally
created credit
money
Centrally created
credit money
Commodity based
base money
Fiat / sovereign
coins based base
money
Our current fiat
monetary system
Hanseatic Network
Decentral crypto credit
money
+
Bitcoin, ETH, LTC, ....
Bitcoin, ETH, LTC, ….
No credit money

23. Programmable Elastic Crypto Credit Money
Bitcoin
Ether
Stable coins
Elastic Crypto Credit Money
Decentral Credit
Money Creation
Decentral Credit
Money Destruction

24. 5’000 years have passed. What’s now?
Scenario 1
Crypto Credit Money will
be created centrally
Scenario 2
Crypto Credit Money will
be created decentrally
Commercial Banks will create
credit supply for the crypto-
sphere
Credit Supply is created peer-to-
peer / decentrally

25. What’s about decentral scenario ?
Base Money: Petro
Decentrally
created credit
money (not yet
available)
Base Money:
National Crypto
currency
Decentrally
created credit
money
Venezuela Nation 2
Base Crypto Currency
(BTC, ...)
Crypto World
Exchange
Now - future
Decentral
credit money
Exchange

26. Roadmap for the Programmable Elastic Crypto
Credit Money
Bitcoin
Smart
Contracts
Collateralize
d Stable
Coins
Collateralized
Credit Coins
Decentral
Programmable
Crypto Base Money
Decentral
Programmable
Elastic Credit
Money
-10 years -5 years now +5 years
Decentral
Crypto Base
Money
Decentral
Programmable
Contracts

27. But where is.
the credit money.
in the crypto sphere?.

28. SmartCredit.io
3Competition: No P2P, No credit protection, No tokenization, No transferability
Company P2P Collateral
Needed
Loan
Time
Credit
Protection
Credit
Tokenization
Credit
Transferability
- 200-500% Minutes Partial No No
* - 140% Minutes No No No
+ 150% Hours Optional No No
- 140% Minutes N/A No N/A
* + 0 Minutes to Hours 20-30% No No
- 200% Days N/A No N/A
- 200% Minutes N/A No N/A
+ Custom Days Cosigners No No
- 140% Weeks to Months N/A No N/A
SmartCredit.io + Less Minutes Yes Yes Yes

29. SmartCredit.io
2
Risk Management
Collateral
Management
Nexobank
SALT
CoinLoan
Lendex
ETHLend
Lendoit
Moneytoken
High collateralization Less collaterlization
P2P lender receives
collateral if NPL (over-
collateralized)
Lender to receive margin
call / fire sale of collateral if
markets fall (over-
collateralized)
Optional Insurance + over-
collateralized
Ripio Credit Network
Hero
Karma
SmartCredit.io
Credit protection
Credit tokenization
Credit transferability
Competition – Business Model Evolution

30. SmartCredit.io
3
Borrowe
r
Bank
Minted Credit Money deposited
Holder(s
)
Credit money
Borrowe
r Lender
ETH or Stablecoin
Collateral +
Borrower’s
obligation to pay
Borrowe
r
Bank
Principal + interest
Collateral +
Borrowers
obligation to pay Holder(s
)
Minted
Collateralized
Credit Coins
deposited
Collateral
Borrowe
r
Lender /
Holder(s)
Collateral
Principal + interest
Credit Coin
Solution – Traditional Bank  Collateralized Credit Coin
Money
Creation
Money
Destruction

31. SmartCredit.io
3Solution – 3 Steps Ecosystem
2-Click Consumer
Credit
Credit Tokenization +
Credit Transferability
Private fixed income
funds for Investors

32. SmartCredit.io 24 April 2019, 32
Registration
Create Loan
Request
Transfer
Collateral
Use the Credit
Coins
• KYC and AML rules
• Social Media profiles
• Psychometric testing
• Relative Risk Rating
calculation
• Capability to Borrow
calculation
• Enter loan tenure
• Enter collateral and
amount of collateral
• Transfer collateral
into the Smart
Contracts
• Pay third parties with the
Credit Coins (ERC20)
• Receive Principal and
Interest on the end of the
Loan Contract
Max 10 min 30 sec 10 sec
Solution: 2-Click Consumer Credit
Lender to
accept loan
• Lender will accept
the loan
• Lender will receive
freshly minted
Credit Coins
3

33. SmartCredit.io
3Solution: Tokenized Credit transferability is the key innovation
Borrower 1
Borrower 2 Lender 2
3rd Party
4th Party
5th PartyLender 1
All others are providing marketplaces
SmartCredit.io = Consumer Credit Marketplace + Immediate Liquidity for the Lenders
Pay
Pay
Pay
Pay

34. SmartCredit.io
3
• Loan agreements are tokenized into Collateralized Credit Coins
• One Collateralized Credit Coin will always be worth at least one ether
• Credit protection via decentral community based protection mechanism
• Lenders are liquid, they can use their Collateralized Credit Coins to pay third parties
Solution: Tokenized Transferable Credit

35. SmartCredit.io
3Solution – Rules based Private Fixed Income Fund
Borrower
Private
Fixed
Income
Fund
Holder
ETH ETH
Lender
ETH
Rules based Investment Engine:
• Gives credit to the Borrower’s
• Buys Credit Coins from the Holder’s
• Receives principal and interest rate
• Reinvests / Distributes based on the
rulesCredit
Coins
Credit
Coins
The Lender / Investor:
• Owns the assets
• Defines the rules
ETH
Principal +
interest

36. SmartCredit.io
3Solution: Consumer Financing from Merchants without VISA
Criteria AS IS SmartCredit.io
Merchant pays fee 3.0% 0.5%
Delay in receiving funds 60 days OR 2.5% Immediate liquidity
Total Costs 5.5% 0.5%
Loan Contract
Merchandise

37. SmartCredit.io
2 Click Consumer Loans
on the Marketplace
Solution: SmartCredit.io Capabilities
Self-loans without
counterparty
Credit Tokenization
(Collateralized Credit Coins)
Consumer Financing from
Merchants
Rules based private fixed
income fund
Credit Transferability
(Lenders can pay third
parties)
KYC / AML, Automated Credit Risk Rating, Legal Enforceability
3
Stablecoins
borrowing
Credit Protection
(Loss Provisions)

38. This is what all other lenders offer......
SmartCredit.io Marketplace + Transferable Tokenized Credit Coins.
Transferability – Transferable Tokenized Credit

39. Loans are tokenized into interest-
bearing Credit Coins
Credit protection is implemented via loss
provisions and collateral
Lenders / Holders can transfer their Credit
Coins to pay third parties
Credit Coins will separate us from others

40. Merchants will love SmartCredit.io.
0.5% fees
Interest bearing
Immediately transferrable

41. Lenders will love our safe investments.
Loans are protected
Monetizable dept
Competitive rate of returns

42. Borrowers will love our technology.
Money on demand
SmartCredit Rates (10-15%)
Accessible Credit Ratings

43. SmartCredit.io
4Market – Exponentially growing crypto users
Region Million Users
China 42
Europe 40
USA 26
Turkey 6.4
Philipines 4
Japan 3.5
Korea 2.67
India 2
South America 1.5
Romania 1.2
Total 130
* Data from SmartCredit.io by Oct. 2018

44. SmartCredit.io
4Market – Millenials
55%
45%
Millenials are main
crypto users
Millenials Non Millenials
33%
67%
U.S. Millenials by end
of 2018
in crypto not in crypto
40%
60%
Usage vs. Investment
currency
currency and investment
20%
80%
Financing activities
Lending and Borrowing
No financing
5 Million
Potential Millenial
Clients NOW in
Europe and North
America

45. SmartCredit.io
4Market – Millenials

46. SmartCredit.io
5Go To Market Strategy
Build community through airdrops, ICO marketing / whitelisting,
community management
Community
Every use of Collateralized Credit Coins is viral marketing for the
SmartCredit.io (zero cost marketing)
Viral marketing
Integration
Integration with anyone who wants to offer consumer credits to their
users:
- Payment integrators
- Marketplaces
- Online shops
- Crypto wallets
2-Click
Consumer
Loans
Get many
users
Get many
transactions

47. Global Roadmap
DEC 17 MAY 18 FEB 19DEC 18 APR 19 Summer
+12
MOS
+6
MOS
White
Paper
published
East Asia
Expansion
Licences
Marketplace
Launch
Europe
Registration
open
Minimum
Viable
Product
Pilot US
Expansion
￥

48. But where is.
the credit money.
in the crypto sphere?.

49. Others offer just a marketplace ..
SmartCredit.io Marketplace + Transferable Tokenized Credit Coins.
SmartCredit.io – Transferable Tokenized Credit
Loans are tokenized into interest-
bearing Credit Coins
Credit protection is implemented via
loss provisions and collateral
Lenders / Holders can transfer their
Credit Coins to pay third parties
We add transferability of the credit.

50. SmartCredit.io Marketplace + Transferable Tokenized Credit Coins.
Demo
1. Register in the https://ico.smartcredit.io
2. Create two accounts – one for the borrower and the other one for the lender
3. Use Google Chrome and Metamask
4. Create in Metamask two accounts – one for the borrower and the other one for
the lender
5. Use Kovan Test Network
6. Get some ETH on Kovan
7. For the Collateral on the Kovan – the Test Tokens (TTT) – just send an e-mail to
us via https://smartcredit.io
8. Access http://app.smartcredit.io as a borrower
9. Access http://app.smartcredit.io as a lender
10.Use https://kovan.etherscan.io to look on the Credit Coins and Ethereum
transactions

51. SmartCredit.io Marketplace + Transferable Tokenized Credit Coins.
Demo
Borrower
defines loan
request
Lender accepts
loan request
Lender uses
Collateralized
Credit Coins
Borrower pays
back the loan
Borrowe
r
Lender
1 ETH
1 Credit Coin
Third
party
1 Credit Coin
Protectio
n
fee
Collateral
LoanContract
1 ETH +
interest
Protection Fund
Collateral

52. SmartCredit.io Marketplace + Transferable Tokenized Credit Coins.
Additionally available in pilot
1. Borrower defaults, insurance takes over
2. Borrower late payments
3. Transferring Credit Coins (Smart Money tokens) to multiple holders
4. Interest and principal payments to the multiple holders
5. Etc

53. It’s Evolution!.
Bitcoin defined the base money for the internet.
SmartCredit.io enables.
Programmable Elastic Credit Money.
for the internet.

54. Appendix Slides

55. SmartCredit.io Use Case.
Alice would like to buy Bitcoin mining
equipment, but she does not have
enough liquid assets available.
She joins the SmartCredit platform and
Peter gives her a loan for 40%
collateral.
Alice receives a 3-month loan in Ether,
which she uses to buy mining
equipment.
Peter receives Credit Coins that
represent Alice’s obligation.

56. SmartMoney is a mean of payment.
Unfortunately, one month later, Peter
realizes that he has lent all of his Ether
and he has no more funds available to
pay his web developer.
However, since Peter has Credit Coins
that are face-value protected, he uses the
Credit Coins to pay his web developer.
This means the principal and interest from
Alice now belong to the web developer.

57. Win-Win-Win, Baby.
Before the loan expires, Alice pays back
the loan principal and interest, which are
automatically transferred to the web
developer’s Ether address.
Alice is returned her collateral. In turn, the
corresponding Credit Coins are
automatically destroyed.
Here, we have a use case with a win-
win-win situation for Alice, Peter, and
the web developer.