ETH Lend
Before I looked into it what it really is I just knew it is a lending platform and immedeatly thought
but it is not. It is a lending platform but there is no mysterious bot or anything which earns magical money.
It is a decentralized lending platform where you can request and give out loans.
If you request a loan you decide how many days at which interest rate you want. Then it is up to the lender if they want to fill your offer.
You have to put down a collateral though which covers more then your actual loan. Every ERC 20 token is accepted though.
The collateral gets locked up in a smart contract and released to the lender if payments are missed or back to you if you paid everything off.
The loans can be pledged to the US dollar price of ETH or to the amount of ETH.
As a lender I am looking for ETH pledged loans only though.
If you give out a loan in $ with the price fe of 1000$ per ETH for 180 days and ETH rises compared in $ you will not give 1 ETH back but the amount you loaned + the interest of course.
If the price should fall in this time frame I would end up with more.
As I want to have more coins and dont care too much about the $ price this does not sound to attractive for me.
The ETH option on the other hand looks interesting on the other hand but it is hard to catch on of the offers because there seem to be a lot of lenders.
As mentioned the interest rates differ as it is up to the market to decide.
The idea is that everyone can get a fair loan despite race, age etc. which sounds good.
The token only has the purpose of reducing the fees if you request a loan but it was mentioned in their telegram that with the next update you can loan the lend token as well and not only ETH as it works now.
The interface doesnt look like much at the moment but they are working on an update which will include filters , so you can search for USD loans only fe or filter by collateral.
"If you give out a loan in $ with the price fe of 1000$ per ETH for 180 days and ETH rises compared in $ you will not give 1 ETH back but the amount you loaned + the interest of course."
Let me get this straight; if a borrower borrows 1 ether when ether is $1000 for three months. After three months, if ether has risen to $1500, the borrower can pay back $1000 (not 1 ether) plus interest and keep the remaining money left?
yes he does not have to pay back 1 Either then just the dollar amount if it is a dollar pledged loan
Thanks for the info
Wow, this is a great development. I will prefer to lend to people in ETH
same here
I'm not really a fun of lending and arbitrage coins and ETH lend doesn't look any different from a lot of them currently on the market.
The only lending platform that ive seen with a reasonable business model is Nexo who allow you to request instant fiat loans attached to your crypto assets. The fiat is paid to your bank or a credit card and can be paid back in crypto, fiat or nexo tokens
Holders of Nexo aren't tied to the loan process they are simply silent investors who receive a share of the 30% of the interest accrued from the loans made.
sounds interesting.
What do you not like about the lending coins?
I don't like when lending coins for a few reasons
I feel there are too many moving parts and adding in volatility of the cryptomarket means that liquidity can become an issue overnight
Since its a new financial instrument they will want adoption as fast as possible and without regulatory checks, so how can you be sure what your default rate will be and what the rate is that business can withstand
thirdly crypto still has a high barrier to entry and you need some technical knowledge to be able to secure a cryptobacked loan its for a select few people which is fine but then you sit in a catch 22 do I try and win this smaller market or do I go for the bigger market out non-crypto people that will require a higher customer acquisition cost and a long tail approach to pulling them into system.
I'm not saying it won't work, I just think there are quite a few projects in this space that will fail and lay the foundation for something that will actually succeed so, for now, I'm holding off on Lending coins until I see one that can convince me they will be around long to be a reasonable investment. I'm sure many people investing in lending coins can make money on short term spikes but thats not really my game plan at the moment
so far I can see, many people use that service already. Its booming. But so far only US citizen can use it, I think? Do you know anything about that @flipstar?
I already used it as a lender so should work for anyone I think
ok, than they change it I think.
Was it profitable enough?
Nice project. Let's see how it goes.
One thing which makes me happy is that people are building paltforms on blockchain and it is going to help in the growth of the community as a whole.
I hope people try this platform and it become one of the best financial services platform.
That's probably why the number of lenders is so saturated. If you take a loan out you're paying interest to someone else on money you already own!
I do not like lending
Because you have to pay the multiplier amount with interest
This is really wrong
i bought this too but still on HODL at it is very low from the high :(
Thank you for your continued support of SteemSilverGold
thanks for ETh information!