Cryptocurrency prices may be a long way from their all-time highs but the peer-to-peer solutions facilitated by blockchain technology are not going away. The rise in bitcoin prices in 2017 brought a lot of attention and prominence to cryptocurrency and its underlying blockchain technology. Blockchain is indeed revolutionizing the way a lot of operations are carried out especially in the financial sector.
One area where blockchain-enabled solutions are garnering interest is in decentralized loan issuance. Peer to peer lending and borrowing is one aspect of fintech where blockchain in its characteristic manner puts the control back at the hands of individuals reducing costs in the process.
We don’t need to look too far to see how blockchain is transforming lending and borrowing. Lendabit, a decentralized lending and borrowing platform designed for users from across the globe, is filling the gap in a sector with a promise of massive growth in the coming years.
Created by a team of fintech innovators, Lendabit system strives to make the lending process easy, straightforward and unbiased for all platform members.
Understanding the Lendabit Platform
Basically, Lendabit Platform connects lenders and borrowers in a blockchain environment which allows borrowers to get fast crypto-secured loans with affordable conditions from lenders, who in turn earn interest on their funds.
DenissMoscenko, CEO, LendaBit.com notes:
“Crypto-secured loans allow for a more convenient and transparent way of lending/borrowing, thus establishing such an environment where all participants’ demands are met.”
On the lender side, the platform guarantees an annual interest rate of 8 to 12 percent at the full term of the loan. Once registered on the platform, a lender deposits cryptocurrency and proceed to make a loan offer. One can make an individual loan offer or add to a pool of standard loans or browse and accept loan requests made by borrowers.
The borrower, on the other hand, deposits cryptocurrency as collateral and proceeds to make a loan request or choose from a standard pool of loans or accept individual loan offers made by lenders.
Features of Lendabit
Users who participate in Lendabit.com get to enjoy some features including:
- Very low processing fees (as low as 1% for borrowers and 0.5% for lenders).
- Interest of about 8 to 12 percent per annum.
- Zero chance of loan default as every loan is secured by collateral in cryptocurrency
- Top-notch security as Lendabit uses secure platform architecture and strong cryptographic tools. All cryptocurrency wallets support multi-signature functionality.
- Very friendly and responsive customer care support available every day of the week. Customer team comfortably handles 12,000 tickets/requests per month.
- Super functional and user-friendly platform architecture designed with AI technology.
- Integration with blockchain-based platforms likecrystalblockchain.com andexonum.com.
- Affiliate program with great rewards
Getting Started on Lendabit
To get started on the platform very easy.
First register. Then deposit cryptocurrency which can be used as collateral (for the borrower) and principal (for the lender). Determine the loan using the loan calculator and confirm loan terms.
The Lendabit Team
The LendaBit team led by CEO DenissMoscenko comprises professionals with a unique mix of blockchain-based project experience, financial expertise, and global market intelligence.
The platform was launched in early 2018 and has its headquarters in Hong Kong, though its operations are global. The firm enjoys the support of BitfuryCapital both via financial investment as well as the contribution of its experienced managing partners.
Reduced Commission Fees on Lendabit Platform
Last month, Lendabit made a surprising decision to further reduce its already low fees. Before the announcement, the platform charged processing fees in three broad categories based on the amount of loan taken. While in the previous system, could borrowers pay as much as 3 percent fee, Lendabit slashed that to a flat rate of 1% fee for all borrowers.
Also, lenders will now have to pay only 0.5 percent of the principal which is half of that they had to pay before the reduction.
These are interesting times for both old and new users of Lendabit.
Get Loan on Lendabit without Verification
Lendabit is going back to a founding tenet of cryptocurrency and blockchain which is true privacy. One beauty of decentralized systems is the absence of a ‘trusted’ third party who has access to and control over users’ details.
In this light, Lendabit recently announced that users can get as much as $300 loan without any form of verification.
More information can be found on the FAQ page on the Lendabit website.
Carolyn Coley is a blockchain reporter. She joined Smartereum after graduating from UC Berkeley in 2018.