Project powered by blockchain | SALT LENDING - Loans Backed By Cryptos.

Today on 14th feb, i am writing a hometask set out by @yohan2on , which is about blockchain powered projects. The project that i find interesting to write about is SALT Lending.

SALT ( Secured Automated Lending Technology) is a platform which offers loans to cryptocurrency holders in leverage to their crytpos . SALT was launched in 2016 by group of bitcoin enthusiasts to provide new level of versatility to crypto holders . Salt token is built on Etherum blockhain but collaterals are recorded on salt platform itself.

This crypto backed loan is offered at zero prepayment in the form of USD and stablecoins . It starts from $5000 at an interest rate from leaser than six percent. Lending period may vary from 3 to 12 months depending upon borrowers pay back capability. LTV (loan to value) ratio of salt rangs from 30 to 70 % which means that 30 to 70% value of the collaterals that we deposit as a leverage can be granted as a loan. It is undoubtedly a worth project, but the shortcoming as of now is limited geographic distribution.

At Salt, on a single email address, 7 accounts can be created. Of these, only one can be personnel and six have to be business accounts. Documents required for verification can be any valid photo id like passport, driving licence or any other government issued document. If you have some documents which doesn't contain photo, salt want us to hold that documents in hand and take a photo and upload. In case document doesn't meet the salt requirements, same is conveyed via email etc.

As we are all aware that crypto are so volatile in terms of price that Intraday variations are significant too. Now the question arises, what if the crypto leveraged increase or decrease in price.

In case the leveraged asset increase in price, than burrower can seek to add the increase value equivalent of the collateral to the principal of the loan or can continue paying what he has accepted at the time of taking loan.

If the leveraged crypto decreases in price, depending upon the agreed terms at the time of taking loan and to stablise the collateral account, SALT gives you option to either add more collateral or make an additional principal payment.

As we know that blockchain is game of keys. As long as you own keys, you own your assets. Once keys are compromised, assets are compromised by default. SALT claims that keys are never exposed to network. And the keys are generated and stored offline. To further emphasise its security, transactions are signed offline. These are some measures taken by SALT in addition to, cold storage, multi signature process (2FA) and burrower's confirmation before moving funds. Salt also claims to recruit 3rd parry to review security.

Salt offers multiple communication modalities ranging from loan support helpline number and mail to live chat with customer care executives.