In the spirit of decentralization, you now no longer need to go to a lending institution to get a loan.
In the same spirit, you don’t even need to be a lending institution to be lending out money and making interest.
Thanks to blockchain technology, there is EthLend to gives people access to funds by way of a peer to peer lending platform.
How To Buy LEND
So you’re interested in buying LEND? Currently, there is no way to buy LEND directly with fiat, so the best way to buy LEND is to first purchase Ethereum, transfer it to your chosen trading platform and change it to LEND. We’ll show you how.
2. Once your account has been created and confirmed, log into your Binance account. Once you have logged into the account, go to the menu, click on the funds section and then deposit on the drop down bar.
3. Once you’re on the Deposit section, click the drop down menu labeled “Select Deposit Coin” and look for Ethereum, or type ETH and select.
4. This is your Ethereum Deposit Address, we have chosen Ethereum instead of Bitcoin due to the lower fees and transfer times. Next we’re going to look at buying Ethereum and depositing it into your Binance account.
1. First change the Buy option from BTC to ETH for USD and then choose your amount.
2. When you have chosen the amount of Ethereum you want to purchase (A minimum of 0.05 ETH is required), you will need to register and confirm your CEX account and payment details.
Once that has been confirmed and the ETH has been deposited into your account, we will then need to move it over to Binance.
3. Select the Withdraw option at the top of the site and select Ethereum as your currency. You will then be given a field, where you will add a wallet. This is where you can transfer your money to Binance.
4. Go back to your Binance Account and copy the alpha numeric code under your Ethereum Deposit section and paste it into your Ethereum Withdrawal section on CEX.io. Confirm that this address is correct and press “Withdraw“.
Your Binance account will now be credited with Ethereum.
2. On the trading platform, select the ETH section and use the search function to search for LEND/ETH and confirm.
3. On the LEND/ETH trading section you can now choose how much LEND you want to buy with your Ether. Once you have chosen your amount, press Buy LEND and place your order.
Once your order has been fulfilled, your account will be credited. Congratulations you’re now the proud owner of LEND.
How does EthLend work?
EthLend can be found on the Ethereum blockchain since it enables smart contracts. Since it is completely decentralised, the loan process is trustless, transparent and immediate.
All loans are backed by the ERC-20 token as collateral. To receive a loan, you have to have the same value of the loan available in tokens. This is the security that the loan will actually be repaid.
A lender reviews the requests for a loan and can accept the loan terms that satisfy their needs. Interest rates and terms are decided on between the parties and the transaction is registered in a smart contract on the blockchain.
What happens if the borrower doesn’t pay?
The collateral they put up, which has to be equal to 1.30 times the loan, will simply be paid to the lender as it is held in a type of escrow. If the loan is paid in full the tokens will be returned to the borrower. Note also, the loan can be repaid at any time without any early payment penalty.
The native coin to EthLend is called the LEND and is used to pay for fees across the platform, like Loan Request Fees and Loan Funding Fee. People who buy LEND are encouraged to use the platform rather than hold it by receiving a 25% discount on platform fees.
Benefits to using EthLend
In the same way you wouldn’t want to sell your house when you need a loan and would simply use it as collateral, EthLend gives you some liquidity if you are holding onto some coins.
A borrower can use the funds to buy during an ICO or take advantage of a dip without needing to cash out.
EthLend is a truly global lending platform that crosses all borders. In most of the world, people are bankless and have no access to loans. As long as somebody has an internet connection and some cryptocurrency, they can now get funds for whatever their need is.
The other benefit is speed. Securing a loan from a bank or lending institution takes time. It could be weeks or months to get the money. As opposed to minutes on EthLend.
The blockchain has disrupted the financial industry with the advent of Bitcoin and Ethereum. More and more barriers are being removed all the time with increased control given over to users rather than institutions. This democratization of lending has the possibility to improve the lives of people all over the world.