ETHLEND, a decentralized lending platform built on the Ethereum blockchain has reached over 4,000 ETH in volume.
Marking an important milestone for decentralized banking. In a recent blog post ETHlend announced that the platform has seen over 200 applications from all across the globe.
The decentralized lending platform aims to bring peer to peer lending to as many people as possible. Interest rates are defined by the market and not by a central authority as we see in the traditional banking system, meaning no matter what country you are situated in you receive the same interest rate.
A traditional loan can take time lengthy time to organize, neglect the younger generation and first-time borrowers. With ETHlend the whole platform is built using smart contracts on the Ethereum blockchain making lending and borrowing permission-less.
This might seem like a disaster waiting to happen, however to get a loan from the ETHlend platform borrowers must offer collateral in the form of ERC20 tokens. Then Lenders are free to choose which loans to fund based off the amount and the coins put up for collateral.
Once the platform receives regular users a type of credit score will be available for reliable borrowers. Their blog post also mentions the adding of a statistics module to the platform, which is to be ready by the end of Q1/2018.