The Introduction of SALT
SALT Blockchain network allows for the lending of cryptocurrencies. The network is also a centralized platform, which enables users to borrow money against any of their crypto assets.
The platform does require more strict rules in order to provide lending services to its users. However, these services are only used and supported by customers in certain US states, the UK and New Zealand.
Users of SALT need to become accredited investors to be able to lend, however. In the U.S this means that you have to have a net worth of at least $1 million. In this process, the SALT cryptocurrency will require a KYC/AML verification right before you can create any contracts on the network.
After the loan is termed, settled and agreed upon, the lenders will be able to deposit fiat currencies to the borrower's bank account. The smart contract that the platform is built on locks the funds of the borrower's in a digital asset wallet. All borrowers will be required to make their fiat payments on a regular basis, and if that borrower misses a payment it will be reassigned to the lender.
Salt tokens must be purchased in order to make use of the wonderful capabilities that the platform has to offer. These tokens can be used as collateral on the platform, SALT has a total supply of 120 million. There are three membership tiers that can be found on the platform, the first base is 1 SALT per year, while premier is 10 SALT per year and enterprise 100 SALT per year. The platform currently offers only Ethereum and Bitcoin as collateral.
An Introduction to ETHlend
The Ethlend platform is a decentralized peer-to-peer cryptocurrency lending network that can be used by anyone. The ETHlend platform works solely via the Ethereum smart contract, and the platform does not store any credit. All borrowers and lenders can only access the ETH based tokens via a smart contract. The smart contract is made with the loan process being programmed to agree to all term, rates, collateral and other details. The borrower can then add the tokens that will be provided to the lender on the platform. All payments to the borrower and lender will be confirmed and required to pay in Ethereum tokens regularly with interest. The ETHlend uses a reputation system in order to attach each Ethereum address score for users to have trustworthy parties.
There are still a few issues with SALT, of which the first is the lending that assures loans will be repaid and all collateral returned. However, some collaterals are high risk and could get lost. This would be similar to a margin call when a users collateral gets depreciated and may have a loan rebalance demand. There is no known time for borrowers to know when to respond to calls, which is an issue. Another drawback is the SALT platform only allows for the borrowing of money in cryptos.
One big advantage of the SALT platform, however, is that through the use of cryptocurrencies as collateral, it will appreciate overtime against fiat currencies. If you need cash fast and you do not want to sell your cryptos. The SALT platform allows users to keep ownership of their crypto's and gain liquid funds.
The ETHlend platform on the other side is a decentralized application, that was built on the Ethereum Network and offers loans in Ether. There will be an additional step for people who want to make loans in cash if the crypto is not accepted as payment in order to buy something.
A disadvantage that users may face is that the cryptocurrency the only ecosystem does not make daily payments in fiat currencies. The ETHlend service helps to provide financial access to all those who do not have financial loans.
The native token of ETHlend is called LEND and can be used as collateral, this gives the lender and borrowers more than 50% discount on application fees. This service is only currently supported by the Meta Mask borrower for Blockchain based asset transfers.
The Best lending platform
These cryptocurrency lending platforms have a lot of different benefits. The SALT crypto offers cash loans for Bitcoin and Ethereum and has delivered some good services. The platform offers cryptocurrencies as a means of value and money service, which is a wide range of compatible ERC-20 tokens.
SALT and ETHlend are great platforms in the growing cryptocurrency ecosystem and offers SALT tokens on the platform. It gives the users unique lending and borrowing options for crypto owners. Blockchain-based loans seem to have a future in the world of finance and will show massive potential with these two platforms.