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PROFILEQUESTION
How good is ETHLEND as a crypto lending platform?
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It is a dapp on Etherum chain which allows p2p lending through Smart Contract. Here no third party sets the rule for the lender and borrower, rather it is the borrower and the lender who formulate the rules, so that either party can get into an agreement through a Smart Contract. 

A borrower can simply take a loan in ETHLend by backing his crypto assets as collateral. It is completely transparent, no verification, no paper documentation, no authentication, etc & everything gets executed through a Smart Contract. The collateral can only be released to the borrower when the loan is paid back fully, or to the lender in case of collateral call or when the loan wasn’t fully paid back at the end of the loan time. In case the borrower defaults, the lender can be able to liquidate the collateral. A borrower is at the liberty to prematurely close the loan at any time. 

LTV

LTV(Loan to Value) for all crypto assets is 50% where as for LEND tokens it is 55%. However if the collateral worth decreases below 50%, then it would trigger a notification call to add more collateral. So ideally the LTV has to remain equal to or greater than 50%.

Fees

The fees in this platform is 20% of the interest on the lender side and 2% origination fee on the borrower side(in first installment only). In case of default, the platform fee is 5% of the collateral amount.

Pegged Loans

It is true that cryptocurrencies are highly volatile. So planning and taking a loan in crypto terms may be or may not be advantageous and it generally exposes to extra bit of risk. Considering this fact, ETHLend also allows users to to receive or fund loans pegged to fiat currencies and that definitely helps to account for volatility.

Collateral & Loan option

At the moment, ETH lend accepts ETH, BTC, LEND and more than 180 liquid ERC20 tokens as collateral. One can avail loan in various options like: ETH, LEND, DAI, TUSD, ETH pegged to USD, EUR, GBP, INR, KRW, JPY and CNY.

Advantages of ETHLend platform:-

  • Holding crypto assets have long term benefits as it is an emerging asset and long terms price appreciation will fetch more gains for hodlers. Apart from that, it keeps you safe from inherent inflation of paper currency. So at a time of emergency, when a person runs out of money, one can leverage on the crypto assets to take a loan in ETHLend.
  • It is the most decentralized lending platform.
  • Its user interface is very friendly and has a very professional design.
  • It has an wide option of collateral. As many as as 180 ERC-20 tokens are accepted as collateral.
  • Both lenders and borrowers have the liberty to customize their offer.
  • A borrower can easily choose a most competitive offer from the listing.
  • It is boarder-less. Borrowers and Lenders can easily make a deal with out any regulatory compulsion across the globe.
  • It is a secured form of loan(backed with crypto assets as collateral). Hence lenders can feel more secure in offering better rates.
  • All the parameters like interest rate, LTV, tenure, collateral types can be easily set as per the choice of borrower and lender. Simply put, it offers extra flexibility so that lender & borrowers can get into an agreement by an ease.
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