You’re in a financial rut. You have a great idea but don’t have the funds to make it happen. Or maybe you’re looking for a little boost to help you get your business off the ground. In either case, Swerri circles could be the answer.
Swerri circles let any user of the platform invite friends and family to collaborate on de-fi projects with a social focus and to contribute, lend, and borrow money. Every Swerri circle is powered by a smart contract that has DAO-like characteristics.
How Do Swerri Circles Work?
Swerri Circles are a new way to trade, borrow, and lend with your friends. They can be created by any member who has downloaded the Swerri App, and every new user who downloads and registers with the app instantly creates a wallet. The user must provide a few specifications before making a Circle; these criteria will be displayed on the app once they click the Create Circle button.
Before starting a Circle, a member must specify the following:
- Circle Name
- Each member’s contribution amount,
- Frequency of contribution (daily, weekly, or monthly)
After that, the user can proceed to welcome members to the circle. The invited participant may contribute using local currency or cryptocurrency (if the wallet has BUSD).
Types of Circles
There are two types of circles:
- Private
- Public
Private circles are only open to members that the creator of the circle has invited; public circles aren’t limited to specific people — anyone in swerri can join them!
How to Borrow and Contribute in a Swerri Circle
Have you ever wanted to borrow money from your friends but didn’t want to ask them? Or you’ve always wanted to lend money to your friends, but they don’t know how much they can afford to pay you back.
With Swerri Circles, you can do both things while also adding cryptocurrency to a smart contract and accomplishing a particular objective.
A Swerri circle is a group of friends, family members, or colleagues who contribute money to a shared pool of capital. Each member of the circle can borrow from the pool and pay back with interest, so everyone benefits from the group effort.
Additionally, Swerri circles are great for collaborating on projects that require more resources than one person can provide. The circle will contribute enough money each week to reach its target and use that sum to get a position in a Swerri project.
Swerri circles are a new way of collaborating using cryptocurrency. They’re like a credit union for the digital age — and they might be the future of finance.
To get started, a member must make a certain amount of contribution before joining the circle. One has the option of contributing in either local cash or cryptocurrency. The contribution amount will then be converted to BUSD.
A borrower can borrow up to three times their contribution amount, but only if they choose eligible guarantors from their circle, those without debts and whose total guarantees are smaller than their contributions.
Once the guarantors agree, the requested loan amount is disbursed to the borrower’s wallet. The loan can be repaid using cryptocurrency in a user’s wallet or through Swerri Master.
You can also join different circles, and if you have enough guarantors for the loan, you can also borrow from the various circles and other lenders on the platform. If a loan is not repaid, the smart contract will seek payment from the members who served as the loan’s guarantors, together with interest.
To Wrap Up
We are all connected. We are all part of something bigger than ourselves, and we need to help each other out. With our app, you can connect with your friends, family members, and coworkers to share resources — money or time — and build a more connected community. So what are you waiting for? Take a look at the Swerri app today!
