ETHLend provides secured lending with the use of ERC-20 compatible tokens as a collateral. For example, users with a token portfolio are not required to sell the tokens to receive liquidity. Instead, the user can pledge the tokens to receive more liquidity. Alternatively, Ethereum Name Service (ENS) domains can be used to secure loans since these domain locks Ether when the domain is paid.
In crypto-economy: Borrowing Ether to participate in different ICOs and purchasing tokens from the exchange for investment strategies without the need to sell tokens. Lending altcoins and tokens for short selling or hedging. Financing mining expansions, liquidity for trading, finance for blockchain startups for ICO marketing by pledging ICO tokens. Unleashing the Ether locked in ENS domains for any finance goal.
In FIAT-economy: By using FIAT-pegging (using USD instead of Ether as a calculation), any finance goal of real world can be met without bearing the volatility.
Future use-cases: Tokenization of Things. Pledging real property, shares, intellectual property and physical objects (such as cars, boats, power plants, solar energy plants and art).
Decentralization changes dramatically the architecture of lending. By decentralizing lending, do not require banks or any other intermediaries for conducting a loan transaction. Decentralization means also that borrowers and lenders do not need to trust even ETHLend once the Smart Contract is deployed to the Ethereum network. These Smart Contracts provide a trustless and transparent lending environment, which is not available on todays FIAT lending market. Trustless means that no one can interfiere, stop or manipulate the loan once deployed. Transparent means that anyone can see the deployed transaction on blockchain ledger by using a blockexplorer. There is no equivalent power on found on centralized environment.
Ethereum provides the ecosystem for lending that is conducted on-chain. By decentralized lending refer that all transactions are made on blockchain and all data that is associated with the loans are stored and running on the blockchain network. The solution provides safety, trust and transparency between the borrowers and the lenders.
Smart Contracts. Ethereum-based Smart Contracts provide the ecosystem for creating trustless functions between parties. By trustless refer that can eliminate the need to rely on third party services. All transactions are performed with the use of Smart Contracts. This means that when deployed, the loan agreement (the code) cannot be manipulated or compromised, even by ETHLend since the code is running on the blockchain, copying itself from hard-drive to hard-drive.
Smart Contracts for decentralized lending. Smart Contract are suitable for lending that does not happen on local or centralized services. In decentralized environment, there is need to secure or provide reputation based trust between the borrower and lender since must trust that the loan is repaid back. Smart Contracts can handle complex transactions such as future payments, sending tokens, sending ENS domains and conducting all sorts of calculations. Moreover, Smart Contracts are capable to store and group data on blockchain which is important for the loan agreements since needed to store information on-chain regarding to the loan amount, premium, days to loan, collateral, the parties of the loan agreement.
- Token: LEND
- Supply: 1,000,000,000
- Platform: Ethereum
- Accepting: (ETH)