Lendingblock is an agreement and stage designed to enhance the opportunities and support for obtaining and lending within a crypto-budgetary framework that brings monetary benefits of borrowing to a dispersed blockage economy. Lendingblock creates a market and monetary basis for crediting securities in cryptoeconomics. The evaluation of securities on credit in the commercial center for securities lending in 2017 amounted to $ 2 trillion, which is 12% of all available shares and bonds. It is normal that the market of cryptographic forms of money and advanced resources will be used after comparative development in the markets of confirmation for respect for financing, but with a faster selection rate taking into account the straightforwardness and smoothness of the market.
Lendingblock cooperated with a number of legal advisors in creating the most appropriate legal framework for lending and borrowing of cryptoactive assets, without exposing these assets to risk. Of course, there are areas in which traditional legal principles should be applied without a direct precedent for cryptoactive assets, but in each case, the extension of existing legal principles was unlikely, leading to unacceptable ambiguity. For the initial analysis, English law was used as a basis for the analysis, but further analysis covering all relevant jurisdictions will be carried out. The relevant legal principles discussed concern the following areas of law relating to lending and lending, legal documentation and the use of intellectual contracts:
• Ensuring the possibility of using crypto-loans and providing
• Legal documentation of the transaction
• Settlement of the dispute
• Regulatory landscape
Documentation of the transaction that creditors and borrowers "signed" on (in electronic form) will be based on a hybrid of standard securities lending documentation and standard secured lending documentation, but adapted to reflect the following characteristics of the Lendingblock transaction:
• Assets granted on credit and provided as collateral are crypto-currencies;
• Security is provided through security rather than the transfer of title rights;
• Syndicated nature of the loan, with the borrower potentially able to withdraw funds from several creditors in one loan;
• A contract that automatically fulfills the obligations of the parties;
• Documentation to be signed electronically.
The LND icon plays an important role in this ecosystem, functioning as the only environment for the payment of interest by borrowers to creditors and as the only environment for the payment of platform platforms Lendingblock.
It describes the Lendingblock token, its use and the economy.
- LND will be a marker compatible with ERC-20.
- The LND marker functions as the currency of use in the Lendingblock economy. Interest payments on loans, paid by borrowers and received by creditors, will be made using LND. For example, a BTC loan secured by ETH collateral will result in the lenders receiving an LND by the borrower. Lenders can then use this earned LND to pay interest on their own loans or sell LND on the secondary market to other borrowers;
- Economics of tokens
- It is shown that the LND score is determined by four factors:
- The requirement (D) to purchase LND for payment by users of the platform, which is directly related to the volume of lending activity, for example, more and more loans will lead to an increase in the cost of LND purchased by lenders;
- The length of time (T) that platform users use LND before exchanging or reusing, for example, a longer waiting period will result in a reduction in the amount of LND available for sale at any one time;
- The total volume of LND in circulation (C), for example, for this general market valuation, the cost of one LND token is inversely related to C; and
- Investors (S) who are associated with an opinion on the growth of the economy Lendingblock
- Borrowers will be able to pre-purchase LND to cover interest payments at the beginning of the loan agreement in order to allow them to fix the cost of interest payments. This leads to an extension of the time of borrowers holding LND to the average value of the loan duration and frequency of payments, for example, a borrower who takes a ninety-day loan with a payment frequency of thirty days will receive equal payments after thirty, sixty and ninety days, which means that LND, bought at the beginning of the loan, will be held on average sixty days. In contrast, if borrowers buy LND to pay interest as they pay off, then the retention period will be minimal.
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.
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