The cryptocurrency industry has ballooned over the last few months due to the rise in Bitcoin value. As the Bitcoin prices grew, those of other associated cryptocurrencies such as Litecoin, Ripple and Ethereum. With the new industry growing, entrepreneurs are looking for new ways they can make an impact, and it seems there might be one bright venture that is coming up. It is called Lendoit!
Lendoit is a peer to peer decentralized lending platform which works with Ethereum. The platform is able to connect lenders and borrowers of the cryptocurrency using what is called smart contracts. The platform is able to use a professional scoring system just like every average lending system. It also gives an APIS for every country and enables lenders to set individual rates and also put a default place where unpaid loans can be traded. There is also an option to syndicate a loan, or if you like, to trade a loan with another lender.
Lendoit has also gone a step further by refusing to take collateral for the Ethereum they give out. The company notes that taking collateral is the equivalent of taking EUR as collateral after lending USD to a customer. The company believes the modern world of micro transactions, use of collateral would be unmanageable and not sensible.
However, it does not mean the lenders will lose their money easily, as the platform has put into place four mechanisms designed to make sure no money is lost. Smart Compensation Fund, Syndicated Loans, 3rd party scoring/verification from local companies, and a collectors market where debts can be sold.
In order to be able to get money from Lendoit, there are some steps required at first. Firstly, a potential borrower must have an account and have membership on the platform. Interested parties can use the Lendoit alpha version to create their membership. Unfortunately, this version is just an alpha, and the company plans ok creating the beta version in the first quarter of 2018. Furthermore, they will release the main product in the third quarter of the year.
The product, looking forward, has some great potential but there are still some asterisks in the strategy of the business. Without a doubt, the removal of collateral will be a big obstacle, but if the smart contracts will be able to tackle that, then there is huge potential in the product. The company has also attracted some high-value investors indicating the value that investors see in the product.
Guide to Lendoit’s loan process
Lendoit is a company based in Israel but incorporated in Gibraltar. There are four founders of the company, with at least eight developers on the job. They also have seven advisers including highly respected Richard Titus and Michael Terpin.
The company said that they were going to introduce a LOAN token which would help with their procedure. The token will be used for several functions, but some of the most important include:
- Borrowers can only use the LOAN token to publish their Smart Loan contracts
- All the fees on the site will be paid in LOANs.
- All the interest will also be paid in LOANs to the lenders and this will be an automatic transaction done by the Smart Conversion Contract.
- Lenders are only allowed to use ERC20 currency to loan, and must also have at least 10 percent of what they are loaning out in tokens.
The token, as mentioned above, will have the symbol LOAN. The pre-sale date for the platform started on the 13th of December and will continue until the 27th of December. The token sale procedure will start on January 18th up-to February 18th, 2018. The company said that they had 1 billion tokens for sale with a hard cap of 50,000 Ethereum, currently valued at $22 million.