Lendingblock prides itself on being the first platform for cross-chain lending in the world in the crypto-economy. It is an open exchange designed for crypto loans. The platform matches lenders and borrowers in a simple, transparent, and safe manner. In other words, Lendingblock provides securities lending within the cryptocurrency world.
The Lendingblock ecosystem is self-contained, allowing for fully collateralized lending and borrowing of crypto-assets. The exchange is the most important component and is what connects lenders and borrowers (sometimes multiple lenders per borrower) transparently, so both parties get the best execution. This exchange is open and in real-time, using the market clearing interest rates for fairness.
The Smart Contract System is another key component of the ecosystem. The operational system is based on smart contracts and implements the agreed lending terms that the exchange creates. Just some of those terms include the initial transfer, collateral management, interest payments, repayment, and default processing.
What Are Some Key Features of Lendingblock?
With Lendingblock, users can lend or borrow any digital asset. A lender can be an institution or an individual looking to earn additional income in a safe manner on long-term investments. Borrowers can be market makers, traders, investors, and funds, among others. With Lendingblock, borrowers can access the assets they need for investment funding, fund working capital, or trading.
Lendingblock prides itself on being simple, transparent, safe, and secure. The simplicity and transparency come from the matching process, which involves fairly pairing lenders and borrowers on the basis of the best rate and first date. For safety and security, all lenders and borrowers are protected by advanced cryptographic security and actively managed collateral.
Lendingblock provides cross-chain interoperability by enabling cross-chain crypto-to-crypto lending that is collateralized. It is secure because the collateral is stored in a secure cryptographic escrow. Management occurs via the transparent smart contracts that lay out all of the loan terms and execute them.
For added transparency and trust, oracles run within an SGX enclave and provide trusted inputs, as well as coordinate multichain transactions based on smart contract instructions.
Who Can Use Lendingblock?
It will be possible for nearly anyone to use Lendingblock since there will be both mobile and web tools. Additionally, there will be APIs that expose market depth, executed transactions, yield curves, and order books, making it possible for borrowers to submit requests and lenders to submit offers.
For added ease of use, Lendingblock will have integration with portfolio tracking and wallet partners, so users can view lending market interest rates in real-time for their portfolios. These partnerships and integration will also make it possible for Lendingblock clients to directly lend without having to exit the application.
What Are LND Tokens?
LND is the token behind Lendingblock. It is used for making payments and for receiving interest on loans. By using LND for these functions, Lendingblock is able to reduce the cost related to exchange fees. This also makes it much easier to manage interest payments since they will be in a single currency instead of the many cryptocurrencies lenders and borrowers have. Thanks to the use of a token like LND, smart contracts can govern a loan’s operational processing requirements. This reduces expenses, risks, and complexity, ultimately delivering lower costs for the borrowers and higher returns for the lenders.
The presale for LND lasted from April 7 to 14 with an allocation of 450 million tokens (45 percent of the total) and a 20 percent bonus. The effective price of LND was $0.01666667. The main sale ran from April 15 to 29 with 100 million tokens (10 percent) allocated and no bonus for an effective price of $0.02. Overall, the soft cap was $5 million with a hard cap of $10 million, a figure that was met with $10 million raised in total. This was divided between $500,000 in the private sale, $5.2 million in the presale, and $4.3 million in the main sale.
In addition to the 45 percent of tokens allocated for the presale, 5 percent for the private sale, and 10 percent for the main sale, another 15 percent are allocated for the growth fund. Fifteen percent goes to founders, with 5 percent each for the team and supporters.
Why Did Lendingblock Choose to Create LND?
There were two major reasons behind the decision to use LND as the primary method of payment within the platform. The first is to simplify receiving and paying interest since the team expects that borrowers and lenders will both utilize multiple different crypto-assets. By using a single token for these transactions, there is no need to spend on exchange fees, saving everyone money. Additionally, using a common currency allows for a simpler technical solution when meeting a loan’s operational processing requirements. This reduces the expense, risk, and complexity, all of which the users would have experienced without the existence of LND.
How Will Lendingblock Use Crowdsale Funds?
Lendingblock has a clear delineation for the use of its funds. Fifteen percent goes to sales and marketing, with 20 percent for developing user tools. Another 20 percent will go to developing the core platform services. Fifteen percent goes to contingency coverage and 10 percent each goes to expert external services, developing integrations, and core management.
What Does the Lendingblock Road Map Look Like?
Lendingblock began in October 2017 with a vision, followed by customer validation in November of that year. In January 2018, the operations were incorporated and the platform design took place. February 2018 saw the private sale and a prototype platform. In March, there was regulatory application and the platform exchange MVP. April saw the ICO and smart contract MVP.
Now in May, the platform is undergoing alpha testing, and there will be regulatory feedback. Platform integration will take place in June, along with customer signup. July should include beta testing of the platform and regulatory approval. August 2018 will be a big month for Lendingblock with the launch of operations and production of the platform.
Lendingblock utilizes blockchain technology to provide lenders and borrowers of crypto-assets with a way to connect. With smart contracts in place, the process of pairing borrowers and lenders is fair and transparent. Investors seem to believe in the potential of Lendingblock since the ICO for LND, its token, reached the cap, raising $10 million.