Hello guys, how are you all doing today? I hope we all are having a great time on this wonderful platform.
Today, I will be reviewing a featured Decentralized App (DApp) and I'll be introducing you all to Ethlend.
EthLend is aimed at enabling decentralized lending throughout the world by allowing crypto to crypto borrowing and lending. All borrowings will be protected by cryptocurrency, even including ENS domains, as collateral.
Ethlend can also be called LEND it was established as an individual-to-individual borrowing and lending platform for different cryptocurrencies.
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Ethlend is aiming at solving the problem of loan defaults, thereby, saving lenders from losses suffered when borrowers can't be able to pay back their loans. It also allows cryptocurrency holders unlock the value from their digital properties without requiring them to sell those properties.
Ethlend is different from all other lending platforms based on how it works.
How Does Ethlend Work?
ETHLend makes use of the Ethereum blockchain which enables secured lending with a straightforward individual-to-individual lending and borrowing model. In practice, the borrowers will create a loan request which creates an Ethereum based Smart Contract.
The image below is a simple explanation of Ethlend lending.
The Smart Contract will be created with use of the data input by the borrower like the amount of the loan, the implored interest rate, and the length of the loan. Also, with that, the borrower also inputs the address for their cryptocurrency and the amount they will use as collateral.
After the Smart Contract has been created, the cryptocurrency put as collateral will be moved to the Smart Contract. When that occurs, the loan will be available for the lenders to fund. Borrowers are also allowed to go through different lending offers, and lenders can also go through different loan requests and they can choose whatever look enticing to them. If the borrower is unable to repay the loan on time, the collateral will be moved from the smart contract to the lender which helps to cover the loan. After the lender has received the tokens, he or she is allowed to sell them in the crypto market and the can also keep them.
The ETHLend system allows you to borrow several different cryptocurrencies. At this time it is possible to borrow ETH, LEND, DAI, TUSD and ETH pegged to a number of fiat currencies. You cannot borrow straight fiat currency at this time, but that’s a functionality the ETHLend team is planning to add in the future.
Borrowers can use ETH, BTC, LEND and over 180 other ERC-20 tokens as collateral for loans. The LTV required is 50%, or 55% when using LEND tokens, which means most loans are back by 200% collateral. The ETHLend team has done this to remove as much risk as possible for lenders.
From a medium post by coinbureau
The Ethlend Team
ETHLend is owned and overseen by a Fintech company called Aave, which is consolidated in Estonia. Although they are registered here, the bulk of the team is based in Helsinki, Finland.
The ETHLend website and Aave website do not have the informations regarding the team anymore. At first, there were 22 team members and 6 advisors listed on the website. The founder and CEO of ETHLend is Stani Kulechov.
He is joined by Jordan Lazaro Gustave as the COO.
How To Start Using the DApp Website
First, you have to register on the website by clicking the Start borrowing icon as in the image below.
You will be directed to a page where you'll be asked to fill the necessary information they need you to answer as seen in the image below.
An email will be sent to you telling you to comfirm your registration.
After confirming your registration, you will be asked to create a wallet. After creating the wallet you will be asked if you want to lend or borrow as seen in the image below.
If you choose to borrow, you can create a loan request or browse the marketplace for existing offers. Some of the existing offers are seen in the image below.
If you choose to lend, you can create a loan offer or browse for existing requests. Here are some of the loan requests in the image below.
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Whatever you option you choose you are guaranteed to enjoy yourself.
Things that are Good About Enthlend
The major benefit of ETHLend is that it is a lending platform that prevents anyone from changing or manipulating loans and loan data. You will get full openness about the borrowers and the lenders, which will bring fairness and freedom to the lending party. And because ETHLend is a global platform it gives a way to access the billions of unbanked people all-over the world.
Things that are not good about Ethlend
The website doesn't explain how the whole process works, they just ask you to lend or borrow.
Conclusion
Enthlend is looking to provide a solution to cryptocurrency lending and is looking for a way to make the process enticing to borrowers and lenders.
RATING: 4/5
References
https://www.stateofthedapps.com/dapps/ethlend
Coinbureau
Crushcrypto
Enthlend
Source
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