Economic Efficiency

Capital Optimization

CreditLoop's economic efficiency model focuses on reducing trapped capital and improving money velocity through the network. By optimizing payment paths and enabling direct settlements, the system significantly reduces the amount of capital needed to maintain debt relationships.

Velocity Improvements

• Reduced settlement cycles from weeks to minutes
• Lower capital requirements for network participants
• Optimized liquidity utilization
• Minimized transaction costs through path optimization

Economic Impact

The system's efficiency gains lead to:

• Reduced working capital requirements
• Lower operational costs
• Improved cash flow management
• Enhanced network liquidity