Topic: ETHLend - Decentralized Lending on Ethereum Network (bounty) - page 12. (Read 13388 times)

Hi ETHLend team,

If I understand correctly, to borrow ETH you need tokens. So basically to borrow money you need money, is that right?

Interview with Stani Kulechov founder of ETHLend

https://www.investitin.com/eth-lend/

How is this different than a project such as https://saltlending.com/?

Now that we have borrower side loan request, the borrower proposes the interest (premium), once we have lenders side loan offers, the lender can also propose the interest rate. So in the end, the interest rate is market driven (as most of the stuff in economy should be). For example, if the interest rate (premium) is not attractive, no one will fund. Therefore the borrower should propose something attractive 

Hi guys, ETHLend Big Bounty Program is Live

25 Million LEND for grabs 

https://bitcointalksearch.org/topic/ethlend-decentralized-lending-the-big-bounty-program-2078686

So where/how the interest portion calculated?

Blockchain startup ETHLend introduces working capital finance for Initial Coin Offerings

  That idea is very interesting as a way to fund new projects replacing the ICO model now threatened by regulators from US SEC and Singapore.

It really should be worth working and developing that insight...

1. Of course they will pay interest, was referring to loan capital.

2. Those are not exchanges, those are called crooks 

1. If they're paying back only what they borrowed with no interest or feed, what's the motivation for lenders? Only the possibility that they won't get repaid and the deposit would be repossessed? then the deposit would need to be worth the total value of the loan plus more!

2. Some exchange charge their own fees plus credit card feeds, bring it up to almost 10%. That's not a small fee - and that's before they even get to the loan itself.

Hi All, we are migrating from Slack to Discord (we hate Slack because it is not secure enough): https://discord.gg/nKjsStv

Join for brainstorming sessions or just to lurk 

Alternative to use USD based loans would means that when 200USD worth of ETH is borrowed, 200USD worth of ETH should be repaid.

On the second, good point but the fees are quite small. 

1. I assume if they're borrowing 200 USD they should pay back more than 200.
2. Also, for people not already in crypto-world, this would add another percentage while they change fiat currency to and from ETH.

UPDATE ON DAPP:

We added Gitter Chat to ETHLend DAPP.

Ask guidance, questions or just chat anything you feel like

Link to the dapp for testing it out: http://app.ethlend.io

Enjoy!

That might not work as good as expected, I still think a stable token would be a less risky approach.

Even USD-pegged loans using altcoins are not that stable. Altcoins can move wildly while borrower is trying to trade crypto to fiat before using the resources or before paying back the loan/interest (while trading back fiat to crypto).

Hate the KYC/AML as well. Lets ask how Shapeshift does KYC? 

Yes any ERC-20 compatible tokens, the DAI project is interesting I have eagerly waited it too Although I found in my research DAI a bit complex, that why we actually came with the USD-peg explained below.

We are soon adding USD-peg lending option to our roadmap. This means that the borrower would not suffer from volatility since all loans could be calculated in USD even if the transactions are in ETH. This means that our non-crypto buddies can also borrow ETH, spend it in FIAT economy and pay the loan back with FIAT earned income without suffering from volatility. For example borrower borrows 200 USD worth of ETH and returns 200 USD worth of ETH.

This is an interesting project as long as it doesn't sink in endless KYC/AML useless mandatory (enforced) rules or implementations.

In the (near) future will your smart contract and platform be able to accept/allow an ECR20 stable token (e.g. DAI¹) as base cryptocurrency for lending and interest payments instead of (or along with) ETH?

[1] AFAIK the most promising project for an upcoming ECR20 stable token is MakerDAO: https://makerdao.com

So instead of selling your portfolio you'll pay interest - you're just betting that the interest you pay is less than the appreciation of the tokens you used for collateral.

News on ETHLend.

ETHLend is partnering up with Jaarvis Accelerator for Hack2Solve 30 hour long FinTech hackathon this weekend. The hackathon will be held at Institute of Management Technology, Ghaziabad, India.

The topics are social banking (blockchain / AI Chat Robots / Robo Advisors), discounting and lending, InsurTech, WealthTech, KYC and privacy. ETHLend rewards the hackaton winner with 20 000 LEND tokens for the most innovative solution on these topics.

The hackathon is a good opportunity for ETHLend to receive feedback on decentralized lending and share knownledge on Smart Contracts development. We think we have lot to offer and lot to receive.

ETHLend's Local Advisor Opindeer Preet Singh is discussing on how ICOs might assist FinTech startups on their innovations. Opinder will also demonstrate the ETHLend dapp for the participants. Do join the hackathon if you are around!

More info on Hack2Solve:

http://jaarvisaccelerator.com/hack2solve/

Tokens are a collateral (or ENS domains). Actually it does no differ from traditional loan, since in the traditional loan in your example, the house or a business is the token! So in traditional sense the house/business ownership transfers to the lender, who then does the repossession. So to realize the house or business (the token) the lender must sell it in order to regain any losses. This is exactly the same pattern as in decentralized lending using ERC-20 tokens.

So what you are actually usually doing in real world with secured loans (loans with collateral), you do pledge value against value. That is the logic of secured lending, otherwise it would be unsecured. With the same logic shares, art, commodities are pledged, liquid or no-liquid, even if you have the market price and would quickly realize. I think the reasons why one pledged instead of selling comes down to different answers. With property, I want to own the token, even if I dont afford to yet. With shares, I believe that the company will grow and would not like to close my position since I might not get the shares back or back for the same price.

For me, a regular Joe, I pledge my tokens because I need more liquidity to participate in different ICOs. I get a decent salary, and I pay the loan amount back before it defaults. This way I can have more liquidity when needed (this was my personal reason why I wanted to use ERC-20 tokens for collateral). Also what I do quite frequently is that when I see the ETH price going down, I pledge my token portfolio to get a decent amount of ETH when it is down, and once I have my payday, I pay the loan back. For me it is just a quick way to get ETH when I need. But this is how I use my tokens and might not suitable for all. I dont sell my portfolio because my blood pressure would be too high if I would have to buy the same amount of tokens back from the market.

Let me get this straight, though: since everything is handled by smart contract, the only collateral is other tokens. So, as opposed to a traditional loan where a defaulted loan would result in repossession of a house or business, a default would transfer only the coins that were set aside.

I"ll assume that most people who take such a loan only have a small amount of collateral in coins (since otherwise they'd just use the coins instead of borrowing against their value - and if they can't be sold easily then they're not worth it as collateral either). Technically it's not an unsecured loan, but it will be only a fraction of the loan value. In that case, the interest would usually be much higher since the lender is taking a bigger risk.