ETHLend - Get a Crypto Loan Without Selling Your Cryptocurrencies (dApp Review)
ETHLend is a decentralized peer-to-peer loan platform built on the ethereum blockchain. It provides loan services to individuals from around the world by allowing them to either borrow or lend money through the platform. The borrower needs to have a means of assuring the lender as to its dedication towards paying the loan, by a means of collateral. The existence of thin collateral gives the lender a peace of mind and guarantee that the loan will be paid in full.
How to Get Started with ETHLend
To get started with Ethlend, you have to register on the platform.
Visit the website here and signup by filling in your email address, country and phone number.
After signing up, go ahead to create a wallet which can be use for lending and/or borrowing.
After creating the wallet, you will have to write down your passphrase, input your wallet password and it will open your account.
After that process, you can now access your account.
How to Become a Lender
To become a lender, you need to install a metamask plugin on your device in order to integrate your personal ERC wallet to your ETHLend account. Also, the currencies used on the ETHLend platform are LEND, DAI, USDT and ETH which are all pegged to the USD, EUR, GRP, INR among others.
How to Borrow
To apply for a loan (borrow), click on start borrowing on the homepage.
- Thereafter, you can either choose to browse through existing offers or create a new offer.
Click on existing offers and input the token you need. Next, you will a list of all available offers. Look through the offers and select the best that suits you. Finally, click on take the loan in order to accept the offer.
Another way to apply for a loan is for you to create your borrow request. Simply select the token you want to use in borrowing, select the amount and duration, then click okay.
On the landing page of the Ethlend website there is a loan calculator that enables you to calculate your loan by using DAI to BTC. It comes with a slider which helps to set it to the required amount you desire.
Unlike most banks that have a fixed interest rate on loans, on the ETHLend platform, users set interest rates during the creation of the loan as a result of the decentralized nature of the platform.
The LEND token is an ERC-20 standard token which can also be stored in any Ethereum wallet like myetherwallet. As a lender, you can stake your DAI token on the platform and be rewarded with this official token called LEND. This lend can be sold for fiat or converted to the initial DAI to resume the whole staking procedure.
Merits of ETHLend
ETHLend has a simple and user friendly interface which makes it very easy to browse through.
ETHLens always provides constant updates about the most recent transactions carried out on the platform which makes it very easy for users to follow on trades on the platform.
Demerits of ETHLend
ETHLend offers a premium service that cost 500 LEND for 30 days and premium users are favorites to get loans. This is a worry to those who cannot afford the premium services.
Moreover, the US is not on the list of countries in which ETHLend services are available. Thus, citizens of the US cannot benefit from the platform.
Conclusion and Rating
ETHLend has proven that borrowing and lending can be done with the power of the blockchain. It provides transparency and low interest rates. This move helps to eliminate the traditional methods of lending and borrowing provided by banks and other financial institutions. Based on these analyses, I rate ETHLend at 4.0/5
All images are screenshots from the ETHLend official website.
The information disclosed by this post is not intended to serve as a financial advice. Making an investment based on these information should be at your own risk.
The post was written for the Steem Cameroon Community by Ndorrh Oswald (@ndorrhoswald) and proofread by @ernestapondo and @slimformin. 80% of this post's author reward will be paid to Ndorrh Oswald and the remaining 20% will be held by this account.