ETHLend is a decentralized lending service offering secured digital loans to customers in an intuitive and secure platform.
The main feature of ETHLend is the financing options available in ETH, which allows users to borrow or lend ETH using ETHLend’s digital tokens in an efficient manner or by using ENS domains as a collateral.
With ETHLend, people from around the world will finally have access to fair financing options through ETH as a lending tool.
ETHLend bases its lending technology off the Ethereum blockchain.
Simply put, ETHLend is a peer-to-peer lending service that completely eliminates intermediaries (such as banks or lawyers) along the way, hence, reducing the costs and time spent on securing loans for users.
The ETHLend platform can be also used as a tool for both B2B and B2C transactions.
Readers should note that because of the blockchain’s inherent properties, data regarding the loans made on ETHLend are not stored on centrally located servers which means that no one (including ETHLend) can steal or move the funds away from the loans’ smart contracts.
To safeguard the platform’s ecosystem, there will be a reputation system integrated into the platform which will be used as a reputation management for borrowers.
An interesting aspect of ETHLend is that both borrowers and lenders will receive 0.1 credit tokens (equal to 1 ETH) each for every loan that is repaid successfully.
These credit tokens can then be used as collateral for loans on the platform or sold for profit.
ETHLend is led by Stanislav Kulechov, a respected individual with tons of knowledge in smart contracts as well as the blockchain technology in general with relevant experiences as a blockchain advisor to notable Finnish firms.
ETHLend will also use Ethereum Name Service Domains (ENS) which are domain names for the upcoming Web 3.0 stack as collateral for loans. ENS domains work similarly to normal web domains but they end in .eth instead of .com.
Unlike regular domains, other users can actually send ETH to ENS domains and the owner of that domain will then receive the ETH just like a regular cryptocurrency wallet.
One of ETHLend’s goals will be to enable Ethereum Domain Names (EDN) as collateral instead of digital tokens, opening up another avenue of financing to the platform’s users.
Fees-wise, ETHLend will collect 0.01 ETH as commission fees for each loan request, as well as a 0.01 ETH fee for funding loans.
The process of securing a loan on ETHLend is incredibly simple and straight to the point.
Borrowers would first have to request for a loan on the platform; this request is then automatically translated into a smart contract by the platform which is then recorded and verified on the blockchain.
The borrower will then fill details such as the desired loan amount, the interest rate, as well as the loan period into the smart contract.
The borrower then inputs the digital token address as well as the number of tokens to be used as the loan’s collateral.
Once all of the details are confirmed, the borrower then transfers the digital tokens as collateral to the loan’s smart contract. Once all of this is done, the lender funds the loan amount.
Just like a marketplace, lenders have the freedom to choose and filter loan requests on ETHLend and choose to fund the borrower they like best.
What happens if a loan is not paid in time or is not paid completely?
In the case of defaults, the loan’s smart contract will automatically transfer the digital tokens used as collateral to the lender’s Ethereum address.
These tokens can be kept by the lender or sold on cryptocurrency exchanges to recover the lost value of the loan easily.
A potentially revolutionary feature will be available in ETHLend which is a credit rating based lending process where borrowers do not need to provide tokens/ENS domains as collateral to receive loans.
Instead, ETHLend will implement an extensive borrower scoring system as well as advanced prediction market technologies to access the risk and insurance policies of users.
The biggest advantage of ETHLend over traditional lending platforms is the platform’s unparalleled transparency.
Since the blockchain is essentially a distributed public ledger, all transactions are recorded on it which can be viewed by anyone.
Although it’s public, transactions cannot be changed, modified, or removed by anyone—not even the ETHLend team.
The zero-counterparty aspect of ETHLend also benefits the platform’s users as no one can manipulate or stop a loan once it is verified and deployed; essentially, you’re dealing directly with the lender instead of having to go through a third-party.
A decentralized lending network also removes restrictions related to global transactions. With ETHLend, lenders and borrowers can arrange loan transactions all across the world without any issues.
Because of the removed limitations, the liquidity pool will increase, leading to more loans and better profits for lenders.
Tokenization also plays an important role in how ETHLend works under the hood.
When assets are tokenized, it can be traded against a loan much easier than its previous state. This leads to lower volatility as well as more options for collateral.
ETHLend will launch a token sale for the LEND token, the platform’s official utility token. The platform’s pre-sale has already ended with 2,000 ETH raised in just under 80 hours.
Aside from powering the platform itself, token holders get to enjoy several features such as:
Using LEND tokens as a discount ticket on the platform’s fees
Token holders receive a special 25% price reduction on platform fees when they use LEND instead of ETH for services.
Receive rewards via airdrops
The platform will use 20% of received fees to buyback LEND from the open market and airdrop (distribute) the LEND for token holders on the platform based on transaction volume.
Receive access to exclusive features available to token holders only
Token holders also get access to exclusive features that are only available for LEND token holders. These include featured loan listings as well as email marketing campaign for new loan requests.
Receive rewards for referring other users
Users who refer new participants to the platform will also be rewarded by ETHLend in the form of LEND tokens for each successful registration.
Here are the details of the upcoming LEND token sale:
Token name: LEND
Token base: Ethereum (ERC-20)
Token supply: 1,000,000,000
Token sale duration: 25th November, 2017 – 27th December, 2017
Token sale target: 37,600 ETH (hard cap)
Token exchange rate: 1 ETH = 25,000-27,500 LEND (depending on period of sale)