OVERVIEW – description provided by CoinLoan
An innovative project that leverages the Blockchain as the foundation for a lending platform that exploits crypto-assets as the collateral for loans.
Anyone can climb aboard as either lender or borrower – Smart Contracts handle the rest.
Each lender deposits a fiat loan onto the platform through the use of traditional payment methods – bank transfers, card payments etc. and subscribes to the platform through an application whereby he or she stipulates their lending terms and conditions.
Alternatively, the lender may prefer to outsource this aspect the platform itself which will automate a redacted, default contract that will allow lenders to minimise their administrative engagement.
Any borrower who does not pay the loaned amount will see their locked crypto-assets liquated and monies thus to the lender with interest where applicable, thus removing risk and ensuring full repayment of the loan in all instances.
Borrowers, on the other hand, will apply to the platform by simultaneously depositing their crypto asset which will then allow them to accede to a loan which does not exceed 70% of the current market value of the pledged asset.
The proposed limitation arises partly from the volatile nature of crypto assets at the time of writing but is subject to review at a later date when the crypto markets undergo what we anticipate to be inevitable future mass adoption.