While DeFi has revolutionized financial speculation and trading, it has largely failed to connect with the real economy—the goods, services, and communities that form the backbone of our daily lives.

This is due to a lack of effective productive-capital formation. 

CreditClub bridges that gap by enabling anyone to create a tokenized onchain credit union.  Permissionless credit markets begin with permissionless credit structures.  

At its most basic, a Credit Club is a single shared pool of funds ("credit vault") that extends credit to up to 150 members, with the pool of funds funded by Member dues or a Token launch.

  A new financial primitive where:
- **Capital becomes renewable**: $1 can become $1.10 without the need for a "greater fool" when put to productive use, .
- **Trust becomes collateral**: Your reputation within your community secures globally usable credit
- **Value stays Local**: Local financial relationships strengthen local economic ecosystems

## Long Term Capital Games
In modern banking, your deposits in your local "community" bank branch do not increase the number of local loans. Nor does your good credit behavior significantly affect the returns of anyone local to you.

In a CreditClub, there is a direct link: your actions are directly tied to the credit of your fellow members.

Credit works only if you lend to people who will pay you back.

In traditional finance, where the lender and borrower have no relationship, it's necessary to collect enough financial and demographic data in order to effectively underwrite a person, as a tranche of statistically similar people.
  
Yet, what a lot of identity and reputation protocols miss is that Reputation is relational, and Identity is contextual. It's only in the absence of that context that one needs complicated systems of recourse and collateral. In a CreditClub, making effective use of and paying back capital directly grows the amount of capital available to the club.

The goal with CreditClub is to make credit a "long-term game with friends" that sustainably and consistently creates value.

## Who is a credit club for?
CreditClub lets you port any reputation you have in a local context for use in a global blockchain.

Identity is multifaceted, and so too are your groups. We imagine folks being part of multiple credit clubs, with their final credit limit being an aggregate of it all.

- A friend group
- A family credit association
- Holders of a specific NFT
- Young professionals
- Farmers CoOp

Any group with a shared common bond makes sense to create a credit club for. 

## How Credit Club Works

A Credit Club consists of a few key components:
1. **CreditVault**: The Contract that manages collective credit capacity
2. **MemberNFT**: Your identity and standing within the club, holders can claim a prorata of credit.
3. **VaultToken**: A club can raise an ICO("Initial Credit Offering") by launching a token
4. **LPtoken**: A Uniswap market is created if a VaultToken is launched. With fees growing the assets of the creditvault and members available credit.

Who can mint a membership can be determined by a initial whitelist, tokengate, member invite system, or centralized underwriter.

**Builders Demo Example:**
1. Creator defines a list of addresses that qualify to claim a proRata credit from the Vault (_builder score>88 in the demos example_).
2. Funders deposit USDC in exchange for vaultToken.
3. When Vault reaches its Raise amount, the vault is activated: 90% of USDC is staked into the Union Credit Network, funding the creditLines + 10% of vaultTokens & USDC are Deposited in LP.
4. Borrowers borrow and repay. The vault will grow or shrink based on the Trust.
5. After the lockup, holders of the vault token can redeem.
  
## How to participate:
We're reimagining finance as club goods for local economies. We lend to friends with no expectation of return, yet when it comes to yield-generating investments, we prefer to give those returns away to distant institutions.

1. **[Builders Demo](https://creditclub.cc/club/0x2072ea35ebdc3b9318a6214f220f9bad1b54f815):** If you had a Builders Score >88 you can claim a credit membership, and if not you can mint the $BUILDERS token
2. **Community Deployments**: [Apply to launch one of the first Credit Clubs](https://forms.gle/SQBKk6dSesV9GFn47v)
3. **Join the Warpcast channel:** [/creditclub](https://warpcast.com/~/channel/creditclub)
4. **Follow along:** [twitter:@creditclub_eth](http://twitter.com/creditclub_eth) or [farcaster:creditclub](http://warpcast.com/creditclub)


Initial Credit Offering:

Introducing Credit Club - Longterm capital games with friends.