Constant is a decentralized finance platform that is like traditional loans, but P2P. That means easy access to credit and super low risk for lenders. Sounds amazing, and Constant is a revolutionary idea that can make both borrowers and lenders happy.
The idea behind Constant is simple. Borrowers and lenders can agree to terms, and create loans that are 100% based in smart contracts. The difference for lenders on Constant is that loans are fully backed by the borrower at the beginning so that there is almost zero risk of default.
Constant has created a platform that cuts banks out of the lending equation and allows anyone in the world to create loans on whatever terms they like. This is a big shift away from the established lending system, and it could be a big benefit for both borrowers and lenders.
Constant Makes P2P Lending Simple
Constant has a simple solution for P2P lending. It is currently operational and has been successful in attracting people. There are no limitations on who can use Constant, which is a big advantage over many fiat P2P lending platforms.
With the Constant platform borrowers post collateral for a loan and then receive their money from a willing lender. All of the collateral is held in a smart contract, and if the value of the ETH that was posted falls too much, it is sold. If the borrower defaults on the terms, the collateral is also sold, and the proceeds are given to the lender.
There are no limits to how much money can be borrowed via the Constant platform, and Constant makes money by taking a 1% fee from the loan. The platform is primed for success and lets both borrowers and lenders create debt agreements on their terms.
P2P Lending: a Better System?
Let’s be honest, the established financial system is a scam. Banks get their liquidity from a central bank that creates the money out of thin air and then lends it to the public. The money that major banks lend is a complete fabrication of value, but it is still widely accepted.
The reasons why people trust government-issued fiat currency are manifold, but it all comes down to social cohesion. P2P lending and decentralized currency undercut the banking system at its most basic level, and demonstrate that fiat currency is just made-up nonsense that relies 100% on faith to function.
P2P lending is a much better way forward, and it keeps almost all of the interest payments in the hands of the people, not the banking system. The net result of this is social empowerment and the effective neutering of power-mad technocrats who are at the helm of a wildly corrupt global money cartel.
How it Works
People should be able to make loans directly with each other. Let’s say that someone wants to make a loan of $10,000 USD, and charge an interest rate of 5%. The term of the loan will be one year, so at the end of the loan, the lender will receive their $10,000 back, plus $500 in interest. In most countries, making a loan in this way will be totally illegal.
Existing social lending platforms are an option for some people, but they don’t offer any sort of collateral to secure the safety of the lender’s capital. Constant is a solution to this problem. On Constant lenders can create any kind of debt offering they want, and borrowers are able to accept the loans if they wish.
When a borrower takes on a loan, they will be required to post 150% collateral of the loan value, which will be held as ETH in a smart contract. When the debt is repaid, all of the collateral is returned to the borrower, and both parties are happy with the result.
Not all collateral is kept in smart contracts, only erc-20 tokens. Bitcoin, for example, doesn’t have smart contracts (that support this kind of platform). For non erc-20 tokens, MyConstant store in a purpose-built server in password-protected web wallets that only their CEO and CTO have access to.
Why do We Use the Banking System?
It is easy to see why P2P lending is a much better option for people who both want to borrow and lend. Constant is working to create a better way for people to access liquidity, or create low-risk returns. The bigger question is: Why do we deal with banks in the first place?
Perhaps the most powerful aspect of a nation (aside from its military) is its ability to regulate trade. Money may not seem like a tool of social control, but it is one of the most potent ways to control a society.
It is for this reason that major nations use economic sanctions before they go to war, and also create legal tender laws to enforce the use of a national currency. Until 1971 these laws were in essence a global gold standard, but that isn’t the case today.
Now, we are using a currency that is more or less a representation of data that is stored in banks’ computers. The entire system is designed to protect entrenched interests, which is why banks charge double-digit interest rates for many loans, but only pay a small amount to savers.
MyConstant is a Part of the P2P Solution
Railing against the existing financial system isn’t difficult, but if we are going to maintain our global economy we have to have realistic solutions to ensure social cohesion.
Constant is a part of the solution, as are truly decentralized currencies like BTC and ETH. The first generation of cryptos aren’t perfect, but they are a big step in the right direction. ETH allows people to create smart contracts, which in turn allow P2P lending platforms to be created.
The idea of a fully collateralized loan may not be appealing to every borrower, but it certainly has a place in the emerging P2P lending pantheon.
In fact, fully collateralized loans that are based in smart contract technology may help people to accept P2P lending as a safer option for debt-based investments, as they are far safer than existing P2P lending platforms.
Check out Constant
Constant is just getting warmed up. It is joining a few other crypto P2P lending platforms like Dharma, Compound, and Nexo, but it sets itself apart from the pack by offering fully collateralized loans that ensure that lenders won’t be wiped out by a bad loan.
P2P lending is sometimes thought of as risky, but Constant is changing the system for the better.
The CONST token/stablecoin has been delisted from crypto exchanges and exists to facilitate the entry and exit from the crypto world for fiat users, as most people will want the ability to use fiat currency (at least for now).
Conclusion
Constant launched in mid-May and has already done more than $1 million USD in loans. The platform offers both borrowers and lenders benefits and should continue to grow its business.
The shift away from centralized power structures is happening, and P2P lending is a big part of replacing systems that don’t really help society as a whole. Constant has built a great platform that allows P2P lending at near-zero risk for lenders, which should help to pump-up liquidity in the P2P lending space.
The P2P lending space is growing all the time, and Constant offers new tools that will probably attract lenders, as the platform almost totally removes risk from lending.
