- Lendroid — A trustworthy, open, peer to peer digital asset lending platform
Lendroid as we know it today is a Non-Rent-Seeking, Trust-Independent Open Protocol for Decentralized Lending. It Enables Holding Leveraged Trade Positions and Short Positions of ERC20 Tokens.
The germ of the idea that is Lendroid was born ten months ago. It was originally envisioned as a decentralized lending protocol. We nurtured the idea among ourselves, refining it over time, even composing an early draft of a white paper, which was generously reviewed and gently critiqued by the community. Then some amazing possibilities began to emerge.
Lendroid is a trustworthy, open, peer to peer digital asset lending platform based on the Ethereum blockchain. The Lendroid marketplace enables borrowers to avail instant low-cost digital asset loans and lenders to earn interest on the digital assets they lend. Additionally, Lendroid support token (LST) holders act as guarantors of these loans by locking up their LSTs as secondary collateral. The Lendroid platform is extensible by design and allows the creation of loan markets on any ERC20 token.
Imagine a truly trust-independent protocol, where lenders and borrowers can discover each other and speak a common language. Where the interests of a Lender — the primary source of liquidity — are protected. Where the terms of the loan are inviolable, ‘on-chain’. A range of interesting applications and financial instruments based on lending can take root, take shape. And facilitating all of these exciting financial models would be, we hope, Lendroid.
Lendroid is itself non-rent-seeking. It is non-partisan. For one, it makes us feel good about what we’re doing. But the larger implication here is that there is no drag on those who choose to build on this protocol, or integrate with it in any manner. If you need a de-facto lending protocol for digital assets, we’re here.
The revolutionary bit about all this is the gradual creation of a shared, global lending pool. For lending to be effective, it is imperative that liquidity is pooled in one place.
Lendroid would enable a universally accessible liquidity pool, not a centrally-controlled one. The difference between the two is the key to true trust-independence.
One of the best use cases for lending today is Margin Trading. It’s a rapidly growing market. On widely used exchanges such as Bitfinex or Poloniex, digital assets are lent, and borrowed by margin traders. On Bitfinex alone, USD funding increased from $14.8 million to $168.5 million (Oct 2016 to Oct 2017). BTC loans in USD have gone from $6.12 million to $183 million (Oct 2016 to Sep 2017) and ETH loans have risen from $834,192 to $88.29 million (Oct 2016 to Sep 2017).
The already established market, and the growth of decentralized exchanges — think 0x (they’ve been an inspiration. More later) — we imagined decentralized margin trading was a missing building block to a powerful solution. 0x brings in atomic swaps of ERC-20 tokens, Lendroid brings in lending and margin trading, and the trio together completes the move towards wholly decentralized exchanges.
Using Lendroid, one could –
- Put digital assets to work to earn interest with low-friction.
- Hold leveraged positions on digital assets in a trust-independent manner, on chain.
- Can hold a short position of a digital asset.
A solution that can achieve all three. Once established and a lending pool is created, endless complex financial applications are possible.
We hope this would be a fertile playing field for the developer community to create digital asset derivatives, financial derivatives and the like.
Lendroid will be extensible into other complex financial models, but the beginning to all this — a holistic, comprehensive beginning to enable all this — is decentralized margin trading, we believe.
In ten months, from when the lights went on, based on some inspired conversations we had with other forerunners in these fields of work, we’ve made some headway in defining and expressing our identity through online and offline channels.
- We’ve had the opportunity to present at a spectacular M-0 Conference, among a canny group of asset managers. Despite indulging ourselves in the technical aspects of the protocol, the reception was warm and very encouraging. You can find the slides right here.
- Also at M-0, we released a second whitepaper that more comprehensively conveys the Lendroid idea.
- We find that fund management is slowly but surely progressing towards the blockchain space and so we have joined the Multichain Asset Managers Association (MAMA) as a founding member, in order to keep pace with the industry and tune in to regulatory vogues.
- Meanwhile, to oversee the development of the protocol, we’ve set up Lendroid foundation. This is based in Singapore.
- We’re now engaged in building the Lendroid community. To socialize this idea of ours and find out if it excites others in the blockchain ecosystem as much as it does us.
What is Margin Trading?
Margin trading refers to the practice of trading with borrowed funds instead of your own. So individual investors buy more stocks than they can afford to. If you pick the correct investment, margin trading can dramatically increase your profit. On the other hand margin trading can amplify gains as well as losses.
How Does Lendroid Work?
A trader (prospective borrower) decides to borrow from lending pool. The borrower put up digital assets as collateral in a smart contract. Automatic system determines if there is an initial match or not between borrower and lender. If the terms match up, smart contract is executed and funds are released for the borrower.
Lendroid creates a global shared lending pool as a supply for borrowers. Borrowers submit offers to this lending pool.
- If the trade ends with a profit, borrower can repay the lenders and take back his collateral.
- If the trade ends with a loss, borrower must compensate the losses and only after paying full amount of borrowed money, he can take back the collateral.
- If trader exceeds the limits of liquidation levels, Wranglers take over the trader account and trade positions.
A loan contract itself is pretty straight forward. But then, who fixes the terms of the loan? How do borrowers find and convince lenders? How do we make sure the borrower has the incentive to repay? What happens if the borrower fails to repay? etc
The main duty of Wranglers is watching over Lenders’ interests and protecting the general process of Lendroid ecosystem.
Lendroid Support Token (LST) & Token Sale
Lendroid Support Tokens (LST) is the main element and payment currency of Lendroid Protocol.
As Lendroid Team described, LST is going to have 3 major roles in the ecosystem:
- To lubricate process and drive utility on the protocol
- To incentivize participation
- To empower governance
LST is an Ethereum based token. LST tokens are being issued with adhere to the ERC20 tokenstandard. They can be stored in any wallet that supports Ethereum based tokens such as Mist, MetaMask, MyEtherWallet.
See the details about token sale below:
Ticker Symbol: LST
Max Token Supply: 12 000 000 000 LST
Released in Public TGE: 240 000 000 LST
Price: 1 ETH= 48 000 LST (without bonus)
Hard Cap: 5000 ETH
Registration for the TGE: 11th February 2018
Public TGE: 19th February 2018
Accepted Payment Methods: ETH
The Lendroid marketplace allows the creation of several loan markets.
Lendroid support tokens(LST) are the native tokens of the Lendroid protocol. Market creators (Lendroid support token holders) propose new markets using a unique set of loan terms (combination of collateral type and ratio).
Lenders and guarantors discover, gather and pre-fund markets which offer loan terms they prefer (terms that they believe will keep the loan solvent, protect their investment and enable them to make money). Guarantors are LST holders who choose to extend support to markets that issue loans that they believe will remain solvent and payout properly, in which case they receive a portion of the interest. If the loan becomes insolvent, they stand to lose their deposit. It is a requirement for every loan to hold LSTs whose value is at least 20% of the borrowed value. The LST deposit acts as secondary collateral for the loan.
Borrowers show up, choose a market depending on the type of collateral they wish to lock, create a loan contract, deposit collateral as defined by the terms of the loan and receive the loan funds.
At the end of the loan period, the borrower has the option to extend the loan by adjusting the collateral locked or repay the loan along with the accrued interest, or stands to lose their collateral.
If the borrower fails to repay the loan, the primary collateral held in the loan in auctioned off. If the funds raised in the auction is insufficient to clear all obligations as much secondary collateral (Lendroid support tokens) is auctioned off to raise additional funds. If even after auctioning off all secondary collateral locked in the loan there are not enough funds to repay all the lenders, the losses get spread proportionately across all lenders, and the lenders are paid out.
The lenders receive two layers of protection for the funds they lend. One from the value of the primary collateral and another from the value of the secondary collateral. This process increases the confidence of lenders and reduces the lender’s market discovery burden.
Total supply: 12,000,000,000 LST
Price: 1 ETH = 48.000 LST
Public sale: 240 million LST
Hardcap: 5000 ETH
Payment accepted: ETH
Distribution of tokens:
Please Meet the amazing Team behind this project
For more information, please visit links below :
Author: Tosin David
ETH Address: 0xccb98e6af2b1dbe621fbac6b48e6e98811fe1243
- Date of publication:
- Tue, 02/13/2018 - 22:27
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