Lendingblock is a protocol and platform designed to provide and stimulate borrowing and lending in a crypto financial system that brings economic benefits from lending (increasing costs and growth, linking supply and demand for capital) with distributed savings to blockers, but minimizing the need for inefficiencies of intermediaries , which are not needed in the environment of cryptographic assets.
Lendingblock creates a market and financial infrastructure for crediting securities in cryptoeconomics. The value of securities held on credit in the securities lending market reached $ 2 trillion in 2017, which is 12% of all shares and bonds outstanding. It is expected that the market of cryptothermics and digital assets will follow a similar evolution in credit markets with respect to financing, but with a faster adoption rate, given the transparency and fluidity of the market.
Lendingblock will be the first exchange for loans protected by a crypto asset that meet the needs of institutional and individual borrowers and lenders in cryptoeconomics.
Lendingblock creates an infrastructure for crediting securities for cryptoeconomics. Using the assumption of accepting credit in the crypto-economic economy is half the norm in lending to securities and assuming a 25 percent annual growth in the total market value of digital assets, it can be assumed that the market for crypto-credit lending can generate annual revenues of more than $ 300 million. USA for three years.
Lendingblock creates an open exchange for borrowing and crediting of cryptoactive assets. Owners of digital assets will be able to obtain stable and safe profits without sacrificing property benefits, and borrowers who own digital assets can use these digital assets as collateral for borrowing at market rates to support financing, hedging or investment strategies.
The end users of Lendingblock will be companies that want to borrow or provide encryption facilities. These entities, whether retail or institutional, will fall into two categories - lenders and borrowers.
Creditors using Lendingblock will include institutional lenders such as asset managers, hedge funds and family offices; and individual participants in "smart lending" who can access credit opportunities,
which are not currently available to them directly:
- will be able to generate additional interest income from their portfolio of assets without sacrificing long-term advantages of ownership; and
- will ensure the security and protection of the full security and automatic application of the default conditions for lending.
Borrowers: - will be typical for users of existing loans for loans, including hedge funds, investment managers, market makers and private traders;
- It will be necessary to borrow digital assets for various purposes, which may include
i. Shortselling - if a trader wants to take a short position, believing that the price of the asset will fall, they will borrow assets and sell them in the current market, and then buy these assets in the future at (hopefully) the lower price to repay the loan;
ii. Hedging - for example, a derivatives market maker, may need to sell assets that it does not have to hedge its related derivative position, and then borrow digital assets to fulfill its settlement obligations;
iii. An arbitrage trader can sell assets on a loan against derivatives derivatives, in order to take advantage of the dislocation between cash and derivatives markets, for example, "index arbitrage", where offsetting positions are taken in the securities basket and in the relevant index of futures contracts; or
iv. Borrowed funds not related to borrowed funds - if the broker or custodian has settlement obligations but does not have assets (perhaps because of operational problems or because his client has not taken adequate measures to deliver the assets), he can borrow assets to ensure that he can fulfill his obligation and thereby avoid possible penalties for malfunctions. - will be able to access the borrowing services that currently do not exist in the crypto-economic economy, in the structure of price and reward, which is transparent and based on market demand and demand.
The loans, organized through Lendingblock, will be secured by a pledge of protection to the creditors from the borrower by default.
Thus, we can say that Lendingblock is an open exchange for crypto currency, where borrowers and creditors are compared in a simple, safe and transparent way. The lending unit creates an infrastructure for future cryptoeconomy.
Useful links about the project:
http://lendingblock.com
https://whitepaper.lendingblock.com/#abstract
https://twitter.com/lendingblock
https://www.facebook.com/lendingblock/
http://t.me/lendingblock