ETHlend (LEND) – Is a Decentralized lending application (DAPP) running on the ethereum network that offers secure peer to peer lending smart contracts. It is a venture that many business are looking into – but ETHlend particular excels in this and looks promising not only as a business but as a cryptocurrency.
ETHLend strives to democratize the process-heavy lending process by removing power and control held by traditional banks and large financial institutions. Unlike other blockchain loan applications, ETHLend allows a borrower and a lender to decide essential loan details without the need of a middleman. Essentially, this means that a lender and buyer anywhere in the world can create a loan contract on their terms creating smart contracts to suit both parties. Trust is eliminated by executing code that does not require a central system and all of the loans are run on the blockchain.
While blockchain technology gives you the ability to become your own banking institution, Ethlend allows you to become your own lending institution. The goal is to democratize lending by making it possible for anyone to join their system. Since there are no bank accounts involved, all one needs is an Ethereum address in order to send or receive a loan.
Decentralization can fix many of the innate problems associated with our current centralized borrowing system. Here are the three biggest reasons the decentralization of loans makes sense.
Trust: Decentralization completely removes the need to trust your loan provider and your counterparty. Loan collateral is locked and controlled by Smart Contracts that are broadcasted on the public blockchain. (Once the data of the loan is set, the borrower inserts the collateral and the loan is funded in secure way by smart contract.
These smart contracts work with the “if” command. “if” the borrower pays his debt the collateral is sent back to his account. “If” the borrower didn’t pay his debt, the collateral is sent atomically to lenders account. Everyone can see the transactions, but no one can manipulate it – as we all know is the beauty of the blockchain.)
Transparency: The Ethereum network provides a transparent ledger which is open for inspection. Every transaction is recorded and can be verified. Ethereum’s transparent accounting removes the blind trust required by transactions between two banking institutions.
Access: By utilizing the Ethereum network, ETHLend lenders and borrowers can arrange loan transactions from anywhere in the world. Loan transactions take place from Ethereum address to Ethereum address allowing unrestricted, worldwide access. Unconstrained, both borrowers and lenders can access a much broader pool of loan liquidity.
The LEND Token Sale and Current Price
ETHLend’s token sale of LEND ended November 30th, 2017. According to ICODrops, ETHLend raised $17,860,000 of its $17,900,000 goal. The maximum supply of LEND tokens to be created is 1,299,999,942 while the current circulating supply of LEND tokens is 1,032,154,231. LEND’s price significantly dropped for a ten-day period starting on January 7th. During this ten-day period, Lend’s price dropped all the way from 40 cents to 10 cents.
Lend’s massive price drop may be attributed to the false rumors that the South Korean government planned to ban bitcoin and cryptocurrency exchanges. This news seemed to cause the entire market to slide. Since bottoming, the price of LEND has stabilized and moved sideways in the 15 to 20 cents range. The cryptocurrency market seems to be following its historical trend of slumping in January. It wouldn’t be surprising to see the market to move sideways another week or two before returning to a slow-moving bull market.
Technical Analysis Points
Over the last week, ETHLend has traded up 46% against the US dollar and one LEND token is being traded for 0.13 on exchanges. ETHLend’s total supply is 1,299,999,942 tokens and its circulating supply is 1,074,308,853. ETHLend has a market capitalization of $129.01 million, which is small compared to coins like XRP and TRX, but small market capitalization just means more room. More than 11 million dollars was being traded on exchanges in the passed 24 hours. LEND experienced a dip coming into 2018 as did most all alt coins, but it now seems to be trending up with momentum. ETHLend can be traded on EtherDelta, AEX, HitBTC, Kucoin, Gate.io, Bibox, Binance and IDEX.
LEND Token Functions
ETHLend’s LEND token is an ERC-20 compatible token that was sold in the presale offering and ICO. The LEND token has several important functions on the DAPP.
Users of LEND tokens will receive 25% price reduction on platform fees compared to paying with Ethereum. Although LEND tokens can be bought and sold on exchanges, the primary use for LEND is to create a discount when paying for ETHLend DAPP deployment fees.
Active lenders and borrowers will be paid with quarterly airdrops. ETHLend plans to use 20% of its decentralized application fees to purchase LEND from the market and “airdrop” the LEND to all lenders and borrowers on ETHLend. Airdrops will be used to increase user adoption and also to add more volume to loan books.
Particular services on ETHLend will be only accessible to be purchased by LEND. Examples of these features include featured loan listings as well as email marketing campaigns.
ETHLend plans to purchase additional LEND to reward lenders and borrowers who add new participants on to the decentralized lending platform.
As a cryptocurrency investor it is always nice to see a strong and dedicated team. The community for ETHlend is small because the coin is relatively new, but a great community nonetheless. With innovative ideas on the horizon, the community will grow and the goal is for this coin to be mainstream. Currently, the team is working on marketing abroad in countries like China and Australia where cryptocurrency is a big deal and once LEND becomes more recognized, value will go up. This is a coin that can easily go up to $1 dollar in value this year.
Holders of the LEND token will receive a 25% discount on deployment fees when using ETHlends ecosystem. The team uses some of the profits generated by this platform to actually buy back LEND tokens from exchanges and then distribute them to lenders and borrowers to increase overall adoption. As the platform becomes more popular, this method makes the token become more scarce overtime.
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