ETHLend: the democratization of loans has reached the Ethereum network

ETHLend is a decentralized loan application (dApp) that runs on Ethereum's network and offers intelligent contracts for secure loans as equals.

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ETHLend strives to democratize the heavy lending process by eliminating the power and control of traditional banks and large financial institutions. Unlike other blockchain loan applications, ETHLend allows a borrower and a lender to decide the essential details of the loan, without the need for an intermediary.

This means that both parties, anywhere in the world, can create a loan agreement on their terms.

Decentralization can solve many of the innate problems associated with our current centralized loan system. These are the three main reasons why decentralization makes sense:

Confidence : decentralization completely eliminates the need to trust your loan provider and its counterpart. The loan guarantee is blocked and controlled by intelligent contracts that are issued in the public block chain.
Transparency : the Ethereum network provides a transparent accounting book that is open for inspection. Each transaction is recorded and can be verified.
Access : By using the Ethereum network, ETHLend lenders and borrowers can organize loan transactions from anywhere in the world. Loan transactions are made between Ethereum addresses, allowing unlimited and worldwide access.

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ETHLend Loans

ETHLend requires borrowers to publish compatible tokens with ERC-20 or Ethereum Names Service (ENS) domains as collateral against loans in the event of default by the borrower.

Currently, only borrowers can create loan applications in ETHLend. To make an application, the borrower must establish data such as the duration of the loan, the interest premium and the number of tokens required for the guarantee. If a lender accepts these terms, a loan agreement will be created. Only two scenarios can result from the creation of any loan:

The borrower pays the loan. The lender receives the borrowed money, plus interest.
The borrower does not pay his loan. The lender would receive the published guarantee from the borrower.
The symbolic sale of ETHLend by LEND ended on November 30, 2017. According to ICODrops, ETHLend raised US $ 17,860,000 from its goal of US $ 17,900,000. The maximum supply of LEND tokens that will be created is 1,299,999,942, while the current circulating supply of LEND tokens is 1,086,339,146.

The price of LEND was significantly reduced during a ten-day period beginning on January 7. During this period, the price of the token fell from 40 cents to 10 cents.

Currently the LEND is quoted at US $ 0.076073.

LEND token functions
LEND is a token compatible with ERC-20, and has several important functions in the dApp:

Discount rates

Users of LEND tokens will receive a 25% reduction in the price of platform fees compared to paying with Ethereum. Although LEND tokens can be bought and sold in exchanges, their main use is to create a discount by paying the deployment fees of the ETHLend dApp.

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Airdrops

Active lenders and borrowers will receive quarterly airdrops. ETHLend plans to use 20% of its decentralized application fees to buy LEND from the market and "launch" the LEND to all ETHLend lenders and borrowers. The airdrops will be used to encourage the adoption of users and also to add more volume to the loan books.

Exclusive functions

The particular services in ETHLend will only be accessible to be purchased by LEND. Examples of these features include prominent loan listings, as well as email marketing campaigns.

Recommendation bonuses

ETHLend plans to buy additional LEND to reward lenders and borrowers who add new participants to the platform.

Unsecured loans

ETHLend also plans to offer unsecured loans to its user base later on. Unsecured loans, in which the borrower does not publish guarantees in case of default, are much riskier for the lender.

To help lenders address the difficulty of assessing the underlying risk of this modality, ETHLend plans to create a decentralized credit rating for all its users. Concisely, ETHLend borrowers will have the ability to build their reputation over time as they successfully pay off loans.

Each ETHLend borrower will have a credit rating created from several data sources. The main data source for these ratings will be the Credit Tokens (CRE) that will be issued from ETHLend.

Reputation-based loans will enable ETHLend to introduce the concept of unsecured loans to users, as well as provide more information for secured lenders. In addition, ETHLend plans to allow users to transmit their decentralized credit rating to other blockchains, so that they can use their well-earned credit scores on different platforms.

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Token CRE

The credit tokens (CRE) are an ECR-20 compatible token that will be used exclusively in ETHLend to represent the reputation of the borrower. These tokens can not be exchanged, or even transferred to another address. The more credit tokens are associated with a user's account, the more reliable the account.

ETHLend will manage the reputations of the borrower by issuing CRE to users who pay loans successfully. For every 1 ETH that a user pays successfully, the user will receive 0.1 CRE.

Similarly, ETHLend plans to "burn" credit tokens from accounts that do not return the loans. A user with a large amount of CRE can obtain loans that another user with a low amount of CRE could not obtain.

Users with larger CRE amounts will be rewarded with better interest rates and will be required to present lower levels of guarantees for similar loans compared to users with less CRE.

What comes

In the near future (Q1, Q2 2018), ETHLend plans to add both Bitcoin and other crypts, as well as unsecured loans to its application. Auctions of loans, crowlending (risk-sharing loans), and bots of loans are other innovations that they hope to incorporate into the platform.

By eliminating central controls and borders in the process, ETHLend hopes to revolutionize the credit industry. Thus, ETHLend, breaking the existing traditional barriers, aims to create a truly global market, where people create loan agreements on their own terms, with conditions that truly satisfy borrowers and lenders around the world.