A simple ledger protocol lending token. Whereas the proper way to see this is that when you buy a LEND5 token, you lend me BCH at daily rate of 0,01369863% or expressed another way, 5% anually.
1 LEND5 represent 1 Bitcoin Cash (BCH) debt issued.
Example: I put up 1 LEND5 for sale at memo. The selling price for 1 LEND5 will equal the price of 1 BCH at the point of listing. The total debt is 1 BCH.
-------------------- Total supply: 50 000 Symbol: LEND5 Decimals: 8 Exchange: memo.cash Type: SLP Token on the Bitcoin Cash Blockchain Annual interest rate: 5% Daily interest rate: 0,01369863% Minimum duration for loans: 30 days Longest duration of loans: 365 days
After you have you have bought the LEND5 token from me on the exchange at memo.cash you start earning interest on it.
I will reach out to you on a message at memo.cash when I want to settle the debt, that message will also carry the entire interest amount of Bitcoin Cash (BCH) with it.
Once you have received the message from me along with the interest you need to send the LEND5 token back to me, according to details given to you in the message.
When you have checked you got the correct interest payment you send the LEND5 token back to me.
I will thereafter send you a new message that confirms the reception of the LEND5 token, along with the principal.
At this point the debt is settled.
Interest on loan starts from the day you buy the LEND5 token, and end on the day I send the message with the interest accrued to you.
I am required to pay back loans within 365 days, but can pay it back after 30 days if I see fit. Most loans will have duration over 30 days.
The blockchain will keep track of successful transactions back and forth between borrower and lender. In general, a transaction back and forth on the LEND5 chain is to be counted as 1 successfully paid loan.
The token uses the hashtag #LEND5 on memo.cash and only posts from this account: https://memo.cash/profile/1Js7vrkLXnXEz7hRh9cjUN6C7rgYhPEdAF is to see as valid LEND5 posts.
Why for me?
I want the ability to borrow money from people, not from banks.
I want to pay back loans to people, not organizations.
I want the ability to borrow without KYC imposed by lawmakers & corporations.
I want to issue the debt in my own currency.
Why for you?
You want to earn low risk interest on your BCH.
--------= FAQ =--------
What happens if I buy a LEND5 token and don`t send it back to you after you have paid me the interest?
If you don`t send the token back to me you won`t receive the principal back.
Is LEND5 only for Memo users?
How do you pay me?
You get paid in Bitcoin Cash on your wallet at memo.cash
Can I sell the debt to someone else, meaning I sell the token to someone else at memo?
Yes, but not without losing the principal.
The token is not meant to be tradable. If you sell the token to someone else, you will only receive the interest accrued for the loan on the day I settle the debt, the principal payment requires your account to send the back the LEND5 token to my account.
All debt is issued with a duration of minimum 30 days and maximum 365 days. If you have sold the token, and the debt gets settled in 35 days, 5 days after you sold the token, you won`t get back the principal because that would require you to send back the token to the original mint from original borrower profile.
Alternatively you make a private deal with the person you sell the token to that you can buy it back within a short amount of time.
Be very cautious as the debt can be settled at any time after 30 days.
How do I know the LEND5 token is real and not someone re-selling it?
Only purchase LEND5 token from the original mint profile on memo to earn interest. If you buy a LEND5 token from someone else that the original mint, you will not earn interest and the original mint will not purchase it back.
Unless you have bought the token from the original mint profile you can also not lay claim the original principal the token carried originally.
Will you pay interest and principal each month?
No. All loans will be paid in full at maturity.
Let`s say you lend me 1 BCH, ie you buy 1 LEND5 token from me, on 1st of January, and I decide to repay you on the 30th of January. In this example you will receive interest for 30 days, and the entire interest and principal is paid on January the 30th.
Interest rate & principal repayment equation:
(1 BCH * 0,01369863%) * 30 days = 0,00410959 BCH in interest (Principal * daily interest rate) * loan duration in days = Interest accrued
Principal + Interest accrued = 1,00410959 BCH
Total repayment to you: 1,00410959 BCH
How often will you borrow money and how much?
It depends. Whenever I borrow money I do so because I need to finance an investment of sorts.
If there is demand for LEND5 on memo alongside good available investment opportunities for me, borrowing frequency and amount may increase over time.
How many loans can you take out? Is there any maximum?
To check how much debt I currently hold you can go to the original mint profile on memo.cash (https://memo.cash/profile/1Js7vrkLXnXEz7hRh9cjUN6C7rgYhPEdAF) and see how many tokens the mint holds.
Equation for finding out how much debt outstanding is:
(Token supply) - (Amount of tokens in Original mint - (Tokens lost - Tokens sold)) = Total debt in BCH
How do I know how many tokens that are lost?
I have a question that is not answered here, what do I do?
Is the 5% annual interest rate in BCH or USD terms?
BCH terms. The debt that is issued through the LEND5 token is not linked to any fiat currency. It is crypto debt, on the LEND5 blockchain, and all interest expressions are in BCH terms.
Why 50 000 tokens and not more/less?
Since 1 LEND5 represents 1 BCH the token supply needs to be viable if the price goes way up or way down. 50 000 tokens with 8 decimals should cover both scenarios and seems suitable.
Are these loans secured with collateral?
No, not per se, however all loans are used to finance investments and not consumption.
Should I have trouble paying the debt because the investment went the wrong way I will liquidate other investments that are profitable to cover the debt.
--------= Wallets and info =--------
Original mint: https://memo.cash/profile/1Js7vrkLXnXEz7hRh9cjUN6C7rgYhPEdAF
SLP Compatible Mobile Wallet: https://badger.bitcoin.com/
Exchange to buy LEND5: https://memo.cash/