ETHLend is a decentralised peer to peer lending platform that allows people all over the world to get a loan or become a lender. With over $20 million lending volume generated last year, it is among the most popular blockchain-based finance applications according to Dapp.com, a data tool to analyze and evaluate apps built on blockchain.
“Economically, the introduction of Bitcoin to the marketplace is a momentous development in the crypto-lending industry as the Bitcoin market capitalization floats above $50 billion,” said Aave’s founder and CEO Stani Kulechov. “For the first time in the short history of crypto-lending, borrowers can propose their own interest rates for Bitcoin loans in a peer-to-peer marketplace instead of relying on lender dictated markets.”
Are ETHLend Funds Safe?
Aave point out that users’ assets are allocated in an Ethereum smart contract. The loan follows the contract logic making the process secure and the only parties able to interact with the loan are the borrower and the lender. The collateral will only be released to the borrower when the loan is paid back fully, or to the lender in case of collateral call or if the loan isn’t fully paid back at the end of the loan time.
If a customer’s collateral significantly decreases in value, they will receive a notification asking them to add more collateral to the Smart Contract and maintain an LTV ratio of 50%.
“ETHLend provides a service that is quite useful for cryptocurrency holders. Now they went further by offering BTC interoperability, representing the king of all cryptocurrencies for most people,” said Jun Gong, Co-Founder of Dapp.com.
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