This will allow insurers to access the risk profiles of prospective clients and to offer them policies based on this. This is a reverse auction where bidders compete to provide the best interest rate for borrowers. It can be pegged to the USD and reduce volatility in lending transactions. Also, tokenization of things means that any real asset can be traded as a ERC-20 token on the blockchain. Literally anything can be put up as collateral on a loan transaction. To my understanding, Ethlend is a decentralised platform built on Ethereum blockchain that grants its users the freedom to receive and “sell” loans at flexible and competitive rates.

EthLend

Since loans tend to be long-term transactions, users feel more secure when they use DeFi mitigating the need to trust the service provider. ETHLend plans to purchase additional LEND to reward lenders and borrowers who add new participants on to the decentralized lending platform. We created this system to reduce the risk for lenders and increase benefits for borrowers, especially those looking to unlock their digital assets’ liquidity. ETHLend provides a way to keep holding cryptocurrencies to take advantage of price appreciation while unlocking the current cash value to invest in other things or grow your business.

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In the near future, ETHLend plans to add both Bitcoinand unsecured loans to its decentralized application. Here are the team’s primary goals for the first two quarters of 2018. Although there seems to be a sufficient amount of LEND tokens being traded on these exchanges, more than half the volume is coming from BiteBTC–which isn’t as popular. Prices from this exchange aren’t even included in the calculation of LEND prices on CoinMarketCap.

To create an account, you’ll need to provide your name and email address and create a password. Depending on the exchange you choose, you may need to provide additional information, like proof of ID, to verify your account. It’s also recommended https://cryptolisting.org/ that you set up two-factor authentication for increased account security. The platform will use 20% of received fees to buyback LEND from the open market and airdrop the LEND for token holders on the platform based on transaction volume.

  • Lender receives his original principal plus interest on repayment of loan by the borrower.
  • It is estimated that there are at least 2.5 billion unbanked people in the world.
  • Users with higher amounts of CRE will be rewarded with better interest rates as well as be required to post lower levels of collateral for similar loans compared to users with less CRE.
  • Since everything is handled via Smart Contracts on the Ethereum blockchain, it’s all quite safe.

This is especially true for those unlocking the liquidity of their digital assets. The Smart Contract is created using the data input by the borrower such as the amount of the loan, the requested interest rate, and the duration of the loan. Along with that the borrower also inserts the address for his or her cryptocurrency and the amount to be used as collateral. Our Website is a financial data and news portal, discussion forum, and content aggregator, so cannot substitute for professional advice and independent verification. Our Content is intended to be used and should be used for informational purposes only. Keep in mind that we may receive commissions when you click on some links on our site.

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The borrower then gains a good reputation when they pay back this loan and earn reputation tokens which gives them access to bigger loan amounts. A decentralized lending network also removes restrictions related to global transactions. With ETHLend, lenders and borrowers can arrange loan transactions all across the world without any issues.

The cryptocurrency market seems to be following its historical trend of slumping in January. It wouldn’t be surprising to see the market to move sideways another week or two before returning to a slow-moving bull market. A small percentage of LEND tokens are released to users regularly as a reward for staking Smart Contracts. The amount of LEND tokens received is based on the amount of ETH sent to the Global Staking Deposit.

EthLend

ETHLend is looking to provide a full-blown solution for decentralized lending. They expect this to make the lending process more attractive to borrowers and lenders, as well as giving the billions of unbanked global citizens an alternative when it comes to borrowing. The major benefit of ETHLend is that it is a trustless lending platform. That prevents anyone from changing or manipulation loans and loan data. You get full transparency about the borrowers and lenders, which will bring fairness and democracy to the lending industry.

ETHLend, the first decentralized lending marketplace

There are also a number of legal, financial and technical advisors listed on the project. ETHLend is owned and operated by the Fintech company Aave, and is incorporated in Estonia. However, despite being registered here the bulk of the team is based in Helsinki, Finland.

Since ETHLend is completely decentralized this removes the need to trust the other party, users can also trust their collateral is safe as it is locked and controlled by smart contracts. Interest rates are no longer determined by politics, finance or banks as both lenders and borrowers can arrange an interest rate that suits both parties. We collect small fees from the lender and small origination fee from the borrower. As an example, customer paid 100 DAI for daily interest on their loan, after refinancing, they were able to cut down over half of the cost of borrowing for the whole loan period. Hence, the fixed loans are our value proposition for the borrowers and lenders since they do not need to worry about the rise of interest.

All borrowings will be secured by cryptocurrency, including ENS domains, as collateral. ETHLend will add mechanisms to call and liquidate the collateral, in case the collateral value drops to a certain threshold. Moreover, the borrower will have the option to provide more collateral to avoid the liquidation. The value of the collateral could be fetched from decentralized exchanges.

EthLend

The tool may be used in the cryptocurrency economy to finance ideas like ICOs and other cryptocurrencies. It has applications outside of the fiat-based financial system, as well. It can be pegged to the US dollar and reduce lending transaction volatility. Also, tokenizing assets allows anything real to be traded as an ERC-20 token on the blockchain.

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In other words, using the platform more frequently leads to greater rewards. Aside from its obvious application of allowing investors to profit from their cryptocurrency holdings and providing borrowers with liquidity, ETHLend might also offer value in various ways. ETHLend offers the ability to borrow ETH, LEND, DAI, TUSD, and several fiat currencies pegged to ETH.

Problems Which Will Be Solved by ETHLend’s Decentralized Lending Platform

Using the CRE token as a unit of trust, reputation-based lending fosters confidence between borrowers and lenders. In addition, this decentralized credit rating attempts to build the borrower’s credit profile by using other blockchains and making the data available to other chains. Other off-blockchain ways to access information and construct the borrower’s credit history are also available. We have been heavily focused on developing good smart contracts architecture and have strict values on the immutability of the code and decentralization.

On ETHLend you can take a loan in one click from the marketplace or request a new one with your own terms. Decentralization removes the requirement of having to trust your counterparty or loan provider. Smart contracts broadcasted on the public blockchain lock and control the loan collateral. Make sure you use our link to signup you will be credited with $10 in free bitcoin when you make your first purchase of $100.

The borrower then inputs the digital token address as well as the number of tokens to be used as the loan’s collateral. One of ETHLend’s goals will be to enable Ethereum Domain Names as collateral instead of digital tokens, opening up another avenue of financing to the platform’s users. Unlike regular domains, other users can actually send ETH to ENS domains and the owner of that domain will then receive the ETH just like a regular cryptocurrency wallet. Another interesting idea that’s been suggested for the platform is the addition of decentralized insurance.

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