Salt – Cryptocurrency Review

About Salt - SALT offers lending and borrowing options for its members (Free of charge). This allows users to leverage their block-chain assets in order to secure cash loans. Currently, individuals are faced with a decision to liquidate or sell their cryptocurrency assets if they want to make a purchase and don’t have enough cash on hand. Therefore, SALT helps to solve this problems by offering individuals access to cash based loans by leveraging cryptocurrency assets, while at the same time maintaining their digital assets.

Income-based lending is borrowing from the future to spend money today.

Asset-based lending is a form of monetizing assets already owned.

Why SALT is needed – Economic growth is limited by the acquisition and liquidation of assets. This is where credit comes to fruition. Credit allows economies to spend money on an magnitude greater than cash based transactions, which is referred to as purchasing power. Prior to SALT there was no way to monetize your cryptocurrency assets without liquidation. Thus, SALT provides individuals with crypto-credit. This provides individuals with an alternative liquid solution in order to preserve their current crypto assets. In addition, SALT does no limit which block-chain based assets can be used for collateral. Therefore all block-chain based assets can be used as collateral for block-chain based loans.

How does SALT work – SALT works by facilitating lending agreements between the borrower and lender. It also ensures the lending agreement made between the borrower and lender by monitoring the value of the block-chain backed asset, therefore ensuring the terms of each smart contract credit agreement. In addition, there are also no origination fees, closing cost, or any other non-sense based fees, which are currently charged on standard credit-based loans. This provides borrowers with a low-cost, and efficient way to pay off their loans since there are no additional cost to the borrower.

What if the value of the cryptocurrency asset increases/decreases? Depending on the terms of the agreement made between the lender and borrower, there are a couple options. For instance, if the value increases, the value of the principal loan can be increased from the lender. Alternatively, the borrower may choose to withdrawal any excess collateral currently being leveraged, above which the original loan stands.

On the other hand, if the value of the cryptocurrency decreases below a determined threshold, a maintenance call is issued to the borrower. In this case, the borrower can either add more collateral, make an additional payment thereby reducing the loan amount, or do nothing. If the later choice is made, SALT will automatically liquidate a portion of collateral in order to correct for any overcollateralization of the loan.

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