Ethlend - The Necessary Requirements Needed When Requesting For A loan
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Ethlend is a decentralized peer-to-peer lending platform that sways on the Etheruem blockchain. It could also be seen as a decentralized market where lending and borrowing cryptocurrencies are carried out. With the help of blockchain and smart contracts, Ethlend will be able to carry out loans successfully. That's not all, the platform also facilitates the utilization of ERC-20 compatible tokens as well as Etheruem Name Service (ENS) domains as a means of collateral. Ethlend strives to unravel the quarries of untimely payment from borrowers upon the loan agreement.
With the integration of blockchain technology as well as Etheruem Name Service Domain, Ethlend will execute a successful loan offer by applying the following techniques;
- Decreases the potential loss of loan capital on default.
- Initiating a reputation and credit system to decipher who is worthy to obtain a loan.
- By integrating a smart contracts model, users are assured the lender's assets are properly secured via the borrower's collateral.
How Does Ethlend Work?
Basically, with the semi-anonymity of the Ethereum blockchain, it's quite difficult and laborious to decipher if a borrower is worthy enough to be granted a loan. However, with the utilization of a reputation mechanism, Ethlend will effortlessly eliminate this dubiety permanently. The idea is, for every Etheruem address, a reputation score will be attached to it in order to assure lenders their funds isn't going to the wrong hands. This will work because the reputation technique operates on the Credit Token (CRE). The credit token is the only token used on the platform.
Ethlend boasts of a high-security lending service, this is because the borrower MUST put up something tangible in form of collateral. Since this will be executed on the Etheruem platform, the borrower must either us ERC-20 tokens or any other Ethereum Name Service (ENS) domains owned by them. If you read my last article, I explained clearly what ENS domains are. Anyway, ENS domains are brief domains that have .eth domain extension attached at the end. Most notably, they are used by Etheruem wallet rather than other wallet address.
Don't worry about your credentials, Etheruem smart contracts will use its robust-fullness to store and secure your credentials.
How Users Can Build Trust Before Obtaining A Loan
The team behind the Ethlend community has hinted some intriguing explanation. One of them is the organization of oracles. It has always been Etheruem's custom to extract users data from the outside source (outside the blockchain) and then link it to different individuals on blockchain. This amazing technique will work perfectly since it'll be used to credit checks on soon-to-be borrowers.
The platform will also integrate other social media platforms to view users profiles and also confirm users identity. Since other social media are centralized platforms, it's data will be utilized upon getting anyone's address. This method doesn't favor the platform only, but it also has great benefits for the borrower, as they will be able to obtain a better lending percentage.
The Benefits Of Ethlend
There are some major benefits being offered by Ethlend. Since the platform is trustless, this connotes that no one (even the founder) has the potency to abort a loan contract once it has been approved. The transparent nature of Etheruem blockchain has made anyone access the lists of ongoing loans transactions within the public records.
Below are some of the advantages Ethlend offers to new and existing users:
- Transparent transactions with reference to blockchain technology
- Welcome holdings of numerous digital assets
- Zero fees lending
- Creates a relationship between lenders and borrowers
- Collateral management etc.
Loan Statistics On ETHLend
| Total volume $USD/ETH | 5,819.35 ETH/1,855.623.17 USD | |||
|---|---|---|---|---|
| Number of active loans | 160 | |||
| Average MPR | 2.71% | |||
| Average loan duration | 91 days |
Crypto Exchanges Where Users Can Buy Ethlend Cryptocurrency
With the peculiarity and importance of this initiative, a handful of crypto exchanges have listed it's token for users to purchase. Some of these exchanges include;
- HitBTC
- EtherDelta
- OKEx
- Binance
- Kucoin
- Gate.io
- Kyber Network, and many more.
The State Of DApss @stateofthedapps
The state of DApps (@stateofthedapps) is a decentralized applications/projects that leverage on Ethereum, EOS, POA and of course steem.
My Thoughts
No doubt, Ethlend has proven to be an all-inclusive answer to the decentralized lending quandaries. Users credentials are secured on the chain since the platform leverages on the Etheruem blockchain as well as smart contracts, it's entirely impenetrable from fraudsters and internet criminals. This platform beats our traditional bank's hands down with its intriguing innovations.
Below is an exquisite video from the team;
For more information and resources, please visit the following below;
Disclaimer:
This is not financial advice. Please do you own research before investing in cryptocurrencies or any digital asset. This blog post is done for entertainment and knowledge purpose only.