Today’s crypto highlights bear the news of a very intriguing partnership. ETHLend, the first decentralized lending marketplace and Enigma, an off-chain network solving scalable privacy for blockchains are planning a partnership for setting up a system of decentralized lending that maintains data and computational privacy.
But what this decentralized lending is and how it works? For that to find out, first let’s have an overview of what exactly is ETHLend and how does it differ from the other cryptocurrency platforms we have discussed so far.
Wouldn’t it be great to live in a world where everyone has the same access to financing? ETHLend makes it a reality by creating a decentralized lending platform.
ETHLend is a peer to peer lending service that is fully decentralized. The company offers people secured loans on the Ethereum blockchain. With ETHLend, users can use Ether to borrow ETHLend token. The token serves multiple purposes, ensuring loan repayment and the no fear of losing capital for the lender when lending money.
ETHLend is a secure lending system that is used by people from Asian countries like China, South Korea, and Japan where Ether currency is widespread. That to the system. People can access Ether from anywhere in the world as a lending tool.
Being a lending system where lenders and borrowers can interact, ETHLend allows for secured lending via the Ethereum blockchain. The lending process is straightforward. The loan request made by the borrowers, issues a smart contract on the Blockchain.
The loan amount, the interest rate and time borrowed are inserted into this. Upon complete insertion of the token address and amount, it can then used as collateral for the loan, after which the lender can fund the loan.
Some cool features
Unstoppable borrowing and lending. No restrictions on lending or borrowing not even by ETHLend. This is made possible by Ethereum Smart Contracts.
Every transaction is visible. All transactions are open for block-explorers. You can follow on what is happening with your loan Smart Contract.
Address 2 Address
You do not need a bank to lend or borrow. With Ethereum network, no middle men is required just the borrower and the lender.
The decentralized ecosystem of Ethereum is quite convenient for decentralized lending to work smoothly, as such lending requires value that could be send and received. Ethereum also allows Smart Contracts which performs complex transactions, and this is also one of the reason why this cryptocurrency is so widely known in blockchain network
The other reason is its the native token of Ethereum, ETH that has gained much popularity in the last couple of years. For decentralized crypto-currency lending to work, it is required that there should be a crypto-currency that is widely used and ETH is just that right one.
Secondly, to make decentralized lending more strong, the blockchain ledger should deal with more complex transactions than merely sending and receiving value. There should be the possibility to add, store data and perform complex requests and calls and ETH has it all to offer.
However, there are still some flaws with Ethereum as well but for ETHlend to happen and work just fine, they have everything they need for now.
What is LEND
According to the official site LEND is an ERC-20 compatible token that is sold for token sale participants. Attractive offers by ETHLend to attract users includes selling ETHLend tokens with 25% discount on deployment fees on ETHLend, when paying with LEND.
A strong to the market is what ETHLend wants to be delivered, their way is to introduce airdrops rewarding the users. A part of this fee is utilized to buy LENDS from exchnage to be distributed amongst the users. The aim is to increase user adoption and provide more value for the product and for the whole ETHLend project by acquiring an active user-base.
Their 24-month vesting plan for the developers supports the aim to deliver a strong token, whose total supply decreases as ETHLend becomes more popular.
How to buy LEND
20% of the decentralized application fees are used by ETHLend to acquire LEND tokens from the market, which it later airdrops to all the users on the ETHLend platform, (which is usually based on the preceding period’s volume). Lenders and borrowers who introduce referrals to the platform are rewarded with Lend tokens, which are additionally purchased by ETHLend.
ETHlend is now officially listed on Binance. You can buy some LEND tokens from Binance by following the steps below:
- Open and verify your account on the Binance platform.
- Fund Your Binance Account.
- Exchange Your Ethers For LEND
By Q4 of 2018, they would be lending other altcoins and digital tokens; at least that’s what the road map says. It would be interesting to see what change this brings about in the crypto world. Till then stay tuned for more updates and feel free to comment below your views.