Salt Lending Overview
There has been enough of ballyhoo around the idea of decentralized finance over the past couple of years. centralize solutions like SALT Lending still have an crucial role to play in the cryptocurrency ecosystem. It provides a service to those users who are looking for loans in USD, and are cryptocurrency holders. SALT is one of the original examples of a platform where cryptocurrency users could borrow against their crypto holdings .
SALT Lending began as an innovative platform with its own native keepsake in the emerging space of crypto finance. The utility of SALT tokens is immediately associate and applicable only to members and can be used to pay for memberships and gain early perks on the SALT platform .
Taking out a lend on SALT Lending works in a manner similar to any other crypto lending platform. First, the user must create an report and provide some personal identification in ordering to verify their account. once an account has been created, the exploiter besides has the choice to add up to six extra business accounts to the same electronic mail address .
After their account is verified a drug user is able to deposit their cryptocurrency of choice to use as collateral for their loan. The stream list of accept crypto assets to use as collateral include : Bitcoin, Ether, Bitcoin Cash, Litecoin, Dash, Dogecoin, Ripple, SALT, USDC, PAX, TUSD, and PAX Gold.
concern rates for crypto-backed loans from SALT Lending start at 5.95 %. however, there is no preset or set pace for loans on this chopine. The rate of concern attached to your lend will be determined by the lender who is contributing capital and will besides depend on current market conditions .
Your loan to value ration will affect how much you are able to borrow on this platform. Users will be warned about potential margin calls before any liquidation event actually takes place. A inaugural alert will be sent to the drug user once the loanword to value ratio reaches 75 %. A force elimination consequence will only take locate once the lend to value ratio reaches 90.91 % .
There is no way for a normal user to earn interest via the SALT Lending chopine. If you are looking for a way to earn a render on your cryptocurrency holdings, then you will need to look at Crypto.com, BlockFi, Compound, or one of the many other crypto lend platforms that support this kind of functionality.
In addition to its base lend platform, SALT Lending besides offers a portfolio management joyride that makes it easy for users to manage all of their cryptocurrency holdings in one location. additionally, the real-time notifications available with this platform make it clear that users will be notified vitamin a quickly as potential in a site where they need to add more collateral to back their outstanding loans. These notifications are sent out via SMS text, e-mail, telephone call, and push notifications. The push notifications are enabled by the mobile SALT Lending applications available for Android and io .
While the SALT token was primitively a key, differentiating view of the SALT Lending platform, the token ’ second utility is chained to the members of its platform. The token used to be necessary in ordain to purchase a membership on the SALT Lending chopine, but that is no longer the subject. As stated on their web site : “ The SALT Membership is a consumptive manipulation product it is not intended for meditation we do not pursue listing it on exchanges, because it does not hold rights or claims to intellectual property, other property, or cash flows. The SALT tokens intended use is on our platform only where Memberships can be used for goods and services provided by the company ”
One final supernumerary sport of the SALT Lending platform that should be covered is the across-the-board insurance offered by the company on crypto assets that are used as collateral for loans. Crypto collateral is held in cold storage, and those crypto holdings are 100 % insured against crime. This is a preferably impressive measure of insurance to be offering, as many institutions only offer policy coverage on cryptocurrency held in hot wallets. Of path, users are hush on the addict for their own losses in a situation where the loss is due to user error or delayed repayment .
History of SALT Lending
SALT Lending was founded in 2016 and completed an ICO in 2017. During the ICO, the company was able to raise about $ 50 million, but this process finally led to an investigation from the SEC in the United States. nowadays, the SALT token is entirely for the use of memberships benefits .
The SALT Lending platform itself went live near the end of 2017 .