The lending business can profit from cryptocurrencies in a number of methods. It faucets a complete new liquidity pool, and its world nature makes lending and borrowing simpler for all events concerned. Nuo Lend is attempting to make an influence on this regard. Lending and borrowing Ether backed by ERC20 tokens is a singular enterprise mannequin.
The Idea of Nuo Lend
The Nuo community is a comparatively new cryptocurrency and blockchain enterprise. It supplies numerous banking-related companies, with lending being one among its main factors of focus. Below the Nuo Lend model, a world lending community will likely be established. The group is assured they will set up a community of lenders and debtors who depend on Ether and ERC20 tokens to change worth on a world scale.
How Does it Work?
Creating a world different to conventional banking will pose its personal set of challenges, particularly in the case of reaching this aim with blockchain and cryptocurrency. For Nuo, discovering one of the best routes will likely be key. Combining blockchains and liquidity suppliers into one lending platform will introduce a whole lot of new use circumstances for cryptocurrency.
Customers can create a mortgage request on the Nuo Lend platform. All they want is the MetaMask browser plugin, which has change into more and more standard amongst Ethereum fans. Nuo Lend helps ERC20 tokens and Ethereum, though solely a restricted set of tokens is accessible proper now. That checklist consists of REP, OMG, BAT, BNT, CVC, and some others.
To guard customers, Nuo Lend requires debtors to pledge 1.5x the specified mortgage quantity as collateral. It’s a failsafe in case the collateral’s worth drops under 33% in opposition to Ethereum. Ought to a borrower fail to pay installments, the contract will likely be liquidated robotically. There’s additionally a 1% charge on all installments paid again to the sensible contract, but debtors are by no means charged any charges or fee.
The Highway Forward
There are nonetheless a couple of necessary options which should be added to Nuo Lend. Lenders can’t put up affords to debtors at this stage. Neither is it attainable for a number of lenders to fund a single aim. Each of these options will likely be made accessible by way of future iterations of the platform. Assist for added ERC20 tokens in addition to cellular purposes are additionally within the works. Nuo Lend additionally goals to help Bitcoin borrowing and non-ERC20 tokens as collateral.