There are many different business opportunities in the world of cryptocurrency and blockchain. Decentralized lending is a business venture a lot of companies would like to explore. ETHLend is doing exactly that, as their secure financial marketplace for peer-to-peer lending using blockchain and smart contracts is being developed as we speak. It is evident there are many benefits to using such a platform.
What Does ETHLend do?
When looking for a loan these days, there aren’t that many options at one’s disposal. Some people around the world don’t even have access to such services, mainly due to a lack of financial inclusion. With blockchain technology and digital currencies, all of those problems can be resolved given enough time and research. ETHLend positions itself as a decentralized peer-to-peer lending marketplace accessible to everyone in the world.
But how Does it Work?
There are many aspects of ETHLend which one should take into account. With this decentralized P2P lending marketplace, there is no central authority to prevent users from lending or borrowing. Everything is handled with smart contracts, and no funds are ever held by the company itself. Moreover, the team provides access to financial services in regions where such options simply do not exist right now.
Since there are no bank accounts involved, all one needs is an Ethereum wallet address in order to send or receive a loan. There are no variable interest rates either, as ETHLend wants to keep fees as low as possible for all parties involved. Additionally, the team focuses on transparency first and foremost. All peer-to-peer transactions are visible for everyone to see, which ensures there can be no tricks or shenanigans along the way.
For now, there is a demo application of the ETHLend platform for users to check out. This alpha is currently running on the main net and should be considered an incomplete version of the final platform. It does provide users with a basic overview of what the ETHLend ecosystem will look and feel like. There is also the native LEND token, which was issued during the project’s initial coin offering a while ago.
What is the LEND Token?
With the LEND token, ETHLend successfully raised several million dollars to build their platform. Holders of this token will receive a 25% discount on deployment fees on the ecosystem, which is a nice feature. Moreover, the team also uses some of the profits generated by this platform to buy back LEND from exchanges. These rebought tokens are then distributed to lenders and borrowers to increase overall adoption. As the platform becomes more popular, the LEND token will become a lot more scarce over time.
What Comes Next for ETHLend?
Before ETHLend can become a reliable P2P decentralized lending platform, a lot more work must be done. For now, the team is working on airdrops for active lenders and borrowers on the platform. There is also on-demand lending through predetermined collateral terms. A decentralized credit rating system and penalties for late payments will be coming in the near future, and an option to lend Bitcoin is expected to go live in the next four months. It seems there is no official beta release of the platform on the horizon, but rest assured ETHLend will transition to a more final state as these new features are introduced.