I want to share something about the SCF new programme, called the mortgage casting. This explanation was given by my leader and I think it is worth sharing. There are two main types of Crypto Currencies in every major Ecosystem
- The Native Token, which is volatile, and has its specific use case
- The Stable Native Token, which is stable, usually pegged to the dollar or another major currency also has its use case which I will explain.
The Native Token can be produced from Mining Nodes through Proof of Work(PoW) or Proof of Stake(PoS)(Please don’t ask me about the PoW and PoS, that’s a subject for another day).
Or the native token can be released through an Initial Coin Offer like what Binance did in 2017 for their BNB. SCF’s native Token SCF is produced from PoS mining through Which we all know about by now
But when it comes to stable coins, they must be issued by the Public Chain company..And they require a lot of financial support to back it.
Stable coins due to their stability and the fact that they don’t fluctuate is the preferred token by traders, merchants and importers who use crypto.
However, to issue any amount of stable coin, you must back it with something of real value. You can’t just issue them out of thin air. That’s where crypto beats fiat.
With fiat, your country’s Government can decide to print money without having any thing to back it. But in crypto when you issue a stable coin you must back it with something that has equal value.
For instance, Tether the mother company of USDT, has significant amount of money in reserves that they use to back every USDT they issue.
That’s what gives the stable coins their value
Now let’s come to our SCF..
The company has launched FinPay.. We don’t use SCF on FinPay because it is volatile, and unpredictable. No trader or importer wants to trade with a token that is this amount today, the next day it has changed completely. So the Stable FUSD is used primarily on FinPay.
The company now has to issue lots of FUSD for it’s growing users who are patronizing FinPay for all their trade activities. And remember, we just learnt that you can’t just issue stable coins out of thin air. You must back them with something of real value. Aside fiat, you can also back a stable coin with a real crypto currency which has value on the market.
The SCF company must back every FUSD they issue with something that has value, so they introduced the Mortgage Casting of FUSD. This program is a bit different from the staking.
This is mainly for traders and investors who need FUSD for business.
The program is simple..
If you have a lot of SCF, but don’t want to trade it or sell it off now, because you are holding for a bull run or a rainy day to sell.
You can give it to the company, they will give you 50% of the SCF value per the current market price in FUSD. So you can use the FUSD for your trade or business. The remaining 50% will also be converted to FUSD but will be held in trust by the company.
However, the remaining one will move with the price of SCF.
So you are free to use the FUSD they gave you for your trade or business, while.
Your SCF is the collateral the company kept, in order to give you the FUSD for your trade.
How different is this from the staking..
- With this, you can come back for the remaining 50% anytime you want, it is not locked up for durations like the staking that we have 7, 15, 30 days.
- When you come back, you will get the 50% to be the current value of SCF on the market, the company will only deduct their small interest charges.
- If you decide to terminate the mortgage contract within the first 72 hours of the contract, you lose 1% of the value as penalty.
- You can leave the remaining 50% for as long as you want. And it will appreciate if the price of SCF goes high.
This feature is tailor made of traders who always want FUSD for business, but at the same time they want to hold their SCFs and sell when there is a bull run.
It is also made for traders who may need funds at any time since with this your capital can be withdrawn any time you feel you feel the need for it. With the staking, your capital is locked up for a period and you can only get it when the maturity date is up With the mortgage casting, the company does not lose, since they keep your SCF in trust as a form of collateral to give you the loan.
The Investor does not also lose since he gets FUSD for business and he also has half of his money held with the company which appreciates as the value of the coin rises. The investor can also call up for his money anytime he needs cash urgently. If you are a smart investor, you can take the 50% of your SCF in FUSD.
Put it in staking for 72 days at the rate of 1.4% you will get 100%, and then request for your remaining 50% from the company again This feature is mainly for Traders on FinPay and other investors who will like to be hoarding their SCF for a bull run. The main advantage of this to the staking is that you can get your money any time you want without delay. So this is all about the New program launched a couple of days ago
I trust you have a better understanding of it now and how it operates.
