SALT, Secured Automated Lending Platform, is a collateral based lending platform that lets you put up your digital assets, ie, crypto currency, in exchange for fiat currency.
Traditional lending is not only out of reach for some people, but, also not very efficient even for people who would normally qualify for a loan.
It can be difficult to secure a loan, it almost always takes too long and it usually expensive. Using the blockchain for a peer to peer lending platform solves those problems.
The loans are trustless and collateralized by using crypto as security.
How To Buy SALT
So you’re interested in buying SALT? Currently, there is no way to buy SALT directly with fiat, so the best way to buy SALT is to first purchase Ethereum, transfer it to your chosen trading platform and change it to SALT. 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 SALT/ETH and confirm.
3. On the SALT/ETH trading section you can now choose how much SALT you want to buy with your Ether. Once you have chosen your amount, press Buy SALT and place your order.
Once your order has been fulfilled, your account will be credited. Congratulations you’re now the proud owner of SALT.
How does SALT work?
SALT works as a membership based peer to peer lending platform tethered to the ERC-20 token on the Ethereum blockchain.
The native token is called Salt and must be purchased to become a member. There are three membership levels. Base, Premium and Enterprise.
The Base membership costs 1 Salt token per year and gives users loans up to $10,000 and terms of 3 to 24 months. The Premium membership costs 10 SALT tokens per year and gives you access to up to $100,000 and a line of credit with terms of 1 hour to 36 months. The Enterprise membership costs 100 SALT tokens. Including access to 1 million USD, with fiat currency selection and metered terms.
To borrow money, you will be matched automatically with a lender that suits your loan needs. In order to borrow the money, 125% of the request must be put up in digital assets. If somehow you are unable to repay the loan, then your collateral is deducted from the unpaid remainder and given to the lender.
Benefits of using SALT for a loan
As I already mentioned, probably the biggest benefit to using SALT is access to capital quickly, cheaply and securely. Banks are notorious for having their central servers hacked and sensitive information about their clients compromised. The blockchain nullifies that fear.
Since it is instantaneous, it is ideal for trading when seconds count. No need to cash out your Bitcoin for a hot ICO when you can just get a quick loan.
There’s another big advantage that traditional lending institutions can’t touch. And that is the fact that if your collateral, i.e. your cryptocurrency, increases in value, you can withdraw some of the collateral or increase the principal of the loan.
How does SALT compare to EthLend or other peer to peer lending platforms?
The biggest difference the is the fact that SALT is membership based. The other difference is anybody can be a lender with EthLend where that isn’t the case with SALT. As things stand now, all loans on EthLend are in Ether where with SALT, even fiat currency can be lent and borrowed.
With either one, there is no penalty for paying a loan off early.
There is a lot to like with SALT and peer to peer blockchain lending in general, but where they are in the early stages of development, we could see some them becoming major players in the lending world.