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Author Topic: Lending Smart Contract extension to ETHlend concept  (Read 124 times)
pinkman12345
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March 07, 2018, 04:09:28 PM
Merited by Vod (2)
 #1

Thought it will be a better idea to give resources to lenders and borrowers here who deal with ETH and ERC20 Tokens for a loan.
I am shocked to see the ETHlend token raising 25 Million for just this small code. Impressive not in terms of code or development but in terms of tricking people to assume it a rocket science.

Here is the pitch:

Any Individual can develop the smart contract.
Borrower sends the ERC-20 Tokens to the contract.
Lenders send the ETH to the smart contract.

Smart Contract sends the ETH to the borrower and holds the ERC-20 Tokens in it for a required period of time.

If borrower does not send back the ETH before the required period of time the Smart Contract consider it as a NPA ( Non performing asset ) and transfers tokens to Lenders.

Let me know if this idea is good, the catch here is that you need to look for collateral of good value else tokens lying in smart contract will depreciate in value in time of market crash and you cannot do anything.

The Smart contract is easily implementable and needs only Metamask and solidity remix and ofcourse two parties.

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March 08, 2018, 01:48:05 AM
Merited by Vod (1)
 #2

Thought it will be a better idea to give resources to lenders and borrowers here who deal with ETH and ERC20 Tokens for a loan.
I am shocked to see the ETHlend token raising 25 Million for just this small code. Impressive not in terms of code or development but in terms of tricking people to assume it a rocket science.

Here is the pitch:

Any Individual can develop the smart contract.
Borrower sends the ERC-20 Tokens to the contract.
Lenders send the ETH to the smart contract.

Smart Contract sends the ETH to the borrower and holds the ERC-20 Tokens in it for a required period of time.

If borrower does not send back the ETH before the required period of time the Smart Contract consider it as a NPA ( Non performing asset ) and transfers tokens to Lenders.

Let me know if this idea is good, the catch here is that you need to look for collateral of good value else tokens lying in smart contract will depreciate in value in time of market crash and you cannot do anything.

The Smart contract is easily implementable and needs only Metamask and solidity remix and ofcourse two parties.

I find a couple of issues with the whole idea

  • What's to guarantee that the smart contract works? As in like say YOU might develop a proper smart contract that works but people here from time to time pull of scams with fake ERC20 tokens which even people who're usually smart fall for. This idea is rife with a risk of scams especially for people who're not careful and send money to the wrong smart contract. Any individual can in theory make the smart contract but realistically not everyone can make or verify the authenticity of it. Question is what would you trust and prefer more, some address the lender/borrower tells you to send money to or dealing with a trusted and reputed user
  • Can the smart contract verify the authenticity of the tokens? Or would that be the responsibility of the lender to check that the borrower has sent the proper tokens and not some fake tokens they made themselves
  • How do percentages play into the whole issue? Like would the smart contract support automatic liquidation of the funds as soon at the price dips below the threshold of whatever is decided by the two people involved in the trade.

pinkman12345
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March 08, 2018, 02:08:04 AM
 #3

Thought it will be a better idea to give resources to lenders and borrowers here who deal with ETH and ERC20 Tokens for a loan.
I am shocked to see the ETHlend token raising 25 Million for just this small code. Impressive not in terms of code or development but in terms of tricking people to assume it a rocket science.

Here is the pitch:

Any Individual can develop the smart contract.
Borrower sends the ERC-20 Tokens to the contract.
Lenders send the ETH to the smart contract.

Smart Contract sends the ETH to the borrower and holds the ERC-20 Tokens in it for a required period of time.

If borrower does not send back the ETH before the required period of time the Smart Contract consider it as a NPA ( Non performing asset ) and transfers tokens to Lenders.

Let me know if this idea is good, the catch here is that you need to look for collateral of good value else tokens lying in smart contract will depreciate in value in time of market crash and you cannot do anything.

The Smart contract is easily implementable and needs only Metamask and solidity remix and ofcourse two parties.

I find a couple of issues with the whole idea

  • What's to guarantee that the smart contract works? As in like say YOU might develop a proper smart contract that works but people here from time to time pull of scams with fake ERC20 tokens which even people who're usually smart fall for. This idea is rife with a risk of scams especially for people who're not careful and send money to the wrong smart contract. Any individual can in theory make the smart contract but realistically not everyone can make or verify the authenticity of it. Question is what would you trust and prefer more, some address the lender/borrower tells you to send money to or dealing with a trusted and reputed user
  • Can the smart contract verify the authenticity of the tokens? Or would that be the responsibility of the lender to check that the borrower has sent the proper tokens and not some fake tokens they made themselves
  • How do percentages play into the whole issue? Like would the smart contract support automatic liquidation of the funds as soon at the price dips below the threshold of whatever is decided by the two people involved in the trade.

1. You don't understand solidity.
2. Smart contract is smart enough to detect fake tokens.
3. Smart contract will not be developed my side..wait a min..it doesn't matter who so ever develop it, once the money (ETH/ERC-20 tokens) are sent to it, it will execute the way it is designed no matter who created it.

The implemented version is here: https://app.ethlend.io/main/all/1  ( see the simplicity )
I am just curious that if people ( both parties) wanna sort this without involvement of 3rd party like ethlend or not.

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March 08, 2018, 03:44:07 AM
 #4

Perhaps this isn't the right thread for this, but what is the point of using a token as collateral for the loan when the token is equally as fungible as ETH? Why not just sell the token and avoid the loan altogether? The ability to borrow/lend is only useful in financial markets because banks can take advantage of the fractional reserve system to lend out a multiplier of their deposits, which promotes growth. Since there is no such multiplier in crypto lending, I don't really understand the point of it when it is collateralized in this way.
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March 08, 2018, 08:43:47 PM
 #5

Perhaps this isn't the right thread for this, but what is the point of using a token as collateral for the loan when the token is equally as fungible as ETH? Why not just sell the token and avoid the loan altogether? The ability to borrow/lend is only useful in financial markets because banks can take advantage of the fractional reserve system to lend out a multiplier of their deposits, which promotes growth. Since there is no such multiplier in crypto lending, I don't really understand the point of it when it is collateralized in this way.

Mainly because if they sell the token and the value goes up, they would be at a loss. If they use it as collateral, they can continue to ride the wave at the risk of the collateral decreasing in value (or the value of eth increasing).
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June 16, 2018, 05:23:39 AM
 #6

Would be cool if something like this, the smart contract, was able to (or coded to) sell if the value of it was to go to 105 percent of the loan amount or something along those lines. I don't know if this is something that an exchange would allow to work, but this would be something very cool to work with if so.

All of you coding genius' is this something which could be implemented through a smart contract?

I would love to see it done without a 3rd party, the less people involved the better -- even without my little tidbit.
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June 16, 2018, 05:34:34 AM
 #7

ETHLend is an excellent project. I could say it's an example of a very, very successful project. I'm one of the early participants in this project and it's the best I ever joined here in this forum so far, and at the moment I think no ICO project can surpass it in terms of rewards, be it investors, and/or bounty participants.

ANN Thread: https://bitcointalk.org/index.php?topic=2013399.0
Whitepaper: https://github.com/ETHLend/Documentation/blob/master/ETHLendWhitePaper.md

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June 16, 2018, 11:04:44 PM
 #8

I read that they want to extend to FIAT lending.

They improved the user interface, it's much better now.

Somebody already did a loan with success ?
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