This is LendChain’s close discussion with everyone this time.
Top 10 Frequently Asked Questions:
1: About this kind of mortgage with digital assets, the details of the entire process, as well as how to count the interest?
This question is very good. One question covers a lot of aspects. First of all, this digital asset mortgage is to charge the currency to our platform, and when it is doing mortgage, it will lock in, and the whole process will be done on the smart contract in the future. The entire process is that after you issue this loan, our other investment users will be able to select some of the financial targets that suit them based on your loan target.
Another important point to be made is how our platform users use their loan time and loan interest rates. These are all decided by the users themselves. If his interest rate is set very low, then it is possible that no one will lend money to him. If he is determined to be very high, then this standard may be grabbed by everyone. Then because it is a mortgage mark, for investors, our first point is to ensure the security of investors’ assets, such as mortgage a bitcoin. That he can borrow the equivalent of 0.5 bitcoin level USDT. We will set this mortgage rate at only 50% in the previous period. Under such circumstances, investors will not have the risk of principal.
2: Do you need a license to do these financial services? Is it legally compliant?
What we are doing is a global platform. This is the kind of mortgage you may issue in China. Then you may lend it to your users in the United States, so we do not need to involve a license. Then our platform does not involve the legal currency, only the lending relationship between digital assets and digital assets. And our main body of the company is registered in the Virgin Islands. The focus behind us will also tend to promote overseas and do overseas markets. Therefore, our public users believe that there is such an inherent advantage that we can first reach out to this platform.
3: Is the operation of the platform decentralized? How to ensure the safety of my digital assets?
With regard to the mortgage loan business, we will put it behind smart contracts, but because it involves digital assets developed on different chains, we need to use cross-chain technology, which we are now developing, but we have to wait.
Wait. In the early days, it may still be done in a centralized manner. In terms of security, we are also the first factor to consider. Therefore, we will use similar hot and cold exchange wallet technology to do some security management. This is still relatively safe. In addition, we will also set up a security claims fund, which is to deal with some of the more urgent and special cases, and use this to ensure that our users’ assets are not lost.
4: Will you issue tokens?
Many users who started playing virtual coins last year should all know that many projects last year were a white paper that would send a coin, and then there would be no such thing. We do not want to do such a thing. We think that we should do a good job of product production first. After establishing the user’s trust in us first, we need to do this according to business needs. Everyone can keep an eye on it, maybe this will be soon.
5: In addition to USDT, are there other anchored digital assets?
The problem should be to say that our Bitcoin (btc) borrows from usdt. Our 1.0 version of mortgages can only be Bitcoin (btc), Ethereum (eth), and public trust (GXS). Then only one kind of loan is usdt, but it will be mainstream in our next iteration: Bitcoin, Ethereum, and usdt will all be used as lending currency. Then other collaterals are decided according to the needs of users, that is, whether you need Eos or Neo or something else. You decide by voting, that is, according to the market.
6: What if someone borrows money?
If the mortgage loan does not return, he is the most disadvantaged. His collateral is actually twice that he borrowed. For example, if Bitcoin has a current price of 8000 USD, he mortgages a bitcoin. He can only use the equivalent of two. Why wouldn’t he still return to other digital assets in Wan’s case? If he does not return, he will lose a value of 8000 USD in collateral. He is not worth it, so this possibility is small, but if it does happen, His bad records will be recorded in the Blockchain, and this is permanent and unchangeable. For him is a big cost of doing evil, and then his collateral will be closed according to the rules of our platform and returned to investors.
7: What kind of currency does the fee charge? For example, I use BTC mortgage lending other currencies, what currency deducted as a fee?
What currency do you borrow?
Then the same, our financial users, for example, you are using Bitcoin to lend to others, then you are due to receive bitcoin principal plus interest.
8: With regard to mortgage loans, bitcoins can be mortgaged out of bitcny without interest, and MarkerDAO on Ethereum can lower the interest rate (0.5% per year) for ETH DAI (1DAI = 1USD). Compared to these two models, what kind of benefits do you have? Advantage?
This question can be answered in the two examples I just cited, one of which is to do more than one Eos and one to be short Eos. If you say these two ways. You may get some money, but what I want to say is whether you are involved in bitcny or DAI, but it is very inconvenient for you to use it in the market. Bitcny we also wanted to be one of our lending assets. However, we cannot choose the first version and we feel that this market demand in the application scenario will be relatively small. Only a few transactions have all the support, so we still do the mainstream currency first. For example, USDT, Bitcoin (BTC) and Ethereum (ETH) are in better circulation.
9: Is the loan product recharged to your company platform or where?
This is for sure. First of all, whether you want to make a loan or finance, you have to put the money on our platform. Then we will create a property that is more inclined to the bank and the purse behind this platform, that is, you can put our money here and we can earn interest on a regular basis. Then there is a lot of liquidity, your flow costs will be very low.
10: Is there any specific advantage in this financial product compared to other platform wealth management products, such as some Alipay funds, or is it more affordable for users?
We have had a good deal of contact with several funds in the virtual currency industry. The annualized income should now be around 200%-300%, which is more shocking than the 4%-7% yield of Alipay. So what I want to say is that we will pick up a lot of quality funds like this on the platform and then break it down so that our users can invest at a lower threshold. At the same time, this interest can be transferred to increase its liquidity, that is, you do not have to wait until after expiration to redeem. This we will find more professional in the market, with successful experience some teams to cooperate.