EthLend is about to change the lending market globally. Currently, interest rates for secured loans (such as property-backed loans) are varying from country to country. Europeans might pay 0.5-5 percent interest rate on home loans. On the other hand, inflation-adjusted interest rate might get up to 32 percent in Brazil, 14 percent in Russian and 11 percent in India according to World Bank 2014 statistics. This creates inequality for the borrowers and creates an access to finance problem. The fact is that getting finance in Europe or the United States is affordable than in other parts of the world.
Flattening the interest rate with Ethereum. By using Ethereum’s native token Ether, transactions are sent globally within seconds or minutes even to a person who does not have access to banking system. What EthLend provides is that now you can loan Ether to anywhere and to anyone without worrying that the borrower does not pay back. EthLend uses ERC20 Tokens as the collateral for loans.
Future use case: Li in China wants to buy a house. He could create an Ethereum-based token and back the token with the house, similarly as DigixDAO back its tokens with gold. Next, Li goes to EthLend and creates a loan Smart Contract. He inserts the loan amount, the premium (interest rate) and days to loan. Now we have a property-backed loan on Ethereum blockchain, which could be funded by anyone in the world. The lending is without borders from this point on.
Current use case: You have 1000 Basic Attention Tokens (BAT) which are lying in your wallet. You need Ether to trade in the Exchange or just to pay bills, buy a car or any other reason. Create a loan request, deposit BAT tokens to the Smart Contract, pay the loan back and get the tokens back.
The decentralized application is live at sign in by using MetaMask Google Chrome Ad-on.
Ethereum and blockchain enthusiasts are involved. EthLend is arranging translation, marketing, design and development related tasks for people who want to be part of EthLend before the upcoming Token Sale (ICO) for Credit Tokens. EthLend has gathered a list of task that can be found at EthLend slack. There will all total of one billion Credit Tokens for sale and 4 300 000 (and more to come) Credit Tokens are distributed for blockchain/Ethereum enthusiasts who are willing to help EthLend further.
Currently, the tasks on the list are reserved quickly and the amount of interest towards EthLend and blockchain-based lending has amazed us all. EthLend is a good example how crowd sourcing is used to develop Ethereum projects. There are people in the community with amazing skills and backgrounds…
See the full list of the available tasks on Ethlend’s Slack: