When talking about financial lending and borrowing, we usually imagine the transfer of cash, fiat currencies and banks. But nowadays, as cryptocurrencies are growing so fast, there is a new method of lending and borrowing that has been born. It is the use of cryptocurrencies for lending and borrowing. There are several platforms that will soon join this sector.
1.SALT (Secured Automated Lending Technology)
-SALT is a platform that can get loans using assets (cryptocurrencies) on the blockchain as collateral, and no credit check is required.
-Users need to purchase ERC SALT tokens to become a member and put up their assets as collateral. Then they can borrow money from the lenders network of the platform. When the loan is paid back, borrowers will get their collateral back. Additionally there is no prepayment penalty. If repayment is postponed, the cryptocurrency itself can be used for repayment.
-The only inconvenience is SALT doesn’t guarantee that will be a big enough pool of liquidity always available to fulfill every loan request immediately, even for approved borrowers. It means that the approved and potential borrowers need to wait for more lenders to enter the system or for funds to be paid back.
-One SALT token is set at $25 and sold within the SALT system, as well as on several exchanges where it is trading at around $4 USD. SALT is used for paying annual membership, which is based on how much the loan is, in the SALT system. At a minimum, 1 SALT covers a loan of up to $10,000. At maximum, 100 SALT for over $1,000,000.
-Interest rates of loans will be between 10% - 15% depends on the terms of the individual loans. When borrowers apply for a loan, available options will be presented for them to choose.
-Lenders at SALT are investors authorized by CFR (Code of Federal Regulations), and have passed the SALT Lending Suitability Test. Also, loans are not transferable via blockchain.
-Lenders at SALT are investors authorized by CFR (Code of Federal Regulations) and comply with the principle of loan compatibility.
-Unchained Capital is similar to SALT. It provides loans based on your bitcoin capital.
-Interest rates are from 10% to 14% annually; includes all interest and fees.
-Terms are from 3 to 24 months with options to renew.
-Borrow up to $1 million without a credit check
-Make monthly payments on the interest. Due in full on the final payment.
According to CEO Joe Kelly, Unchained Capital is working with accredited investors and small institutions. As of December 2017, their lending fund is over $10 million.
-EthLend is a full free-market platform where borrowers and lenders can connect and negotiate the interest and duration. The platform is entirely based on Ethereum so any ERC20 tokens are valid as collateral on the loan. Each loan will create a Smart Contract, in case borrowers break the terms of the Smart Contract, their collateral will be lost.
4.Winner of Vietnam 1st Blockathon with LaLaLend Project
-At the end of November, a Blockchain Hackathon was first hold in Vietnam which participants are groups of youth from universities around Vietnam and PRD as diamond sponsor.
-The winning project belongs to a group of 5 young people - named Uclear from Ho Chi Minh City.
-This group has worked within 36 hours to build an ecosystem for personal financial support through P2P Crowdfunding.
-In the ecosystem, the recipients and contributors of capital will carry out transactions with the interest rate determined by the form of direct auction in the community. The speed of disbursement, credit profiles are optimized based on blockchain technology.
-The prize for this project was 50 million VND and a pitching trip in Korea.
In the period of the 4.0 industry revolution by AI (artificial intelligence) and IOT technology, the world continues to change and new technologies are being born. Legal regulations for virtual currencies such as bitcoin are introduced, and we are at the dawn of a new era in finance. The virtual currency has the potential to change financial filed, as well as Internet business rules.
In addition, the blockchain technology can greatly change the future appearance of finance through transformation of the structure of financial transactions and major reforms through the utilization of artificial intelligence (AI) and big data. t the same time, many companies are paying attention to the business effect of the blockchain.
Wrappy, a next-generation distributed SNS application utilizing blockchain technology, which is expected to open up an unexplored economic zone by realizing trustless world in online communication and causing credible innovation.