Frequently Asked Questions
ETHLend is a decentralised peer to peer lending platform that allows people all over the world to get a loan or become a lender. As a decentralised platform, using the Blockchain technology we enable you to get or fund a loan within minutes in a secure way
Am I Eligible To Take A Loan?
Yes, our service is currently available worldwide.
Where Are My Funds Allocated? Are My Funds Safe?
Our platform is decentralised, your assets are allocated in an Ethereum smart contract. The loan follows the contract logic making the process secure and the only parties able to interact with the loan are the borrower and the lender. The collateral will only be released to the borrower when the loan is paid back fully, or to the lender in case of collateral call or when the loan instalments werent paid back.
What Happens When My Collateral Value Changes?
If your collateral significantly decreases in value, you will receive a notification asking you to add more collateral to the Smart Contract to avoid a collateral call.
Will I Be Notified In An Important Situation As A Collateral Call?
Yes, you will receive an email notification:
- Being a borrower, when the next instalment payment is close.
- Being both borrower or lender, when the current price of the collateral is above collateral call price by 20% and 10%.
- Being both borrower or lender, when the loan is collateral called.
How Much Is The Interest Rate?
As ETHLend is a peer to peer platform, the interest rate is set by the users during loan creation.
What Are The Fees Of The Platform?
The fees taken by ETHLend are the 0.75% origination fee in the first instalment (borrower side), and 1% (from the 10% liquidation fee) on the collateral amount in case of collateral call or default call. Using LEND tokens as collateral will reduce those fees by half and using them as currency will lead to zero fees on the platform.
What Are The Pegged Loans?
With the pegged to FIAT currency you can receive or give funds using cryptocurrencies as ETH but with a value pegged to one of the available FIAT currencies. With this you are allow to receive pegged to FIAT loans using crypto without the risk of crypto volatility. This is the best option for users who want to receive or fund a loan without need to take in account the volatility of cryptocurrencies.
For example, imagine you receive a 200 ETHUSD loan and the price of ETH is 200$. You will receive 1 ETH at the beginning of the loan. Then in the moment of paying back, imagine the price of ETH is 400$, you will pay back 0.5 ETH (200 USD). Or imagine a case where the price of ETH is 100$, then you will pay back 2 ETH (200 USD).
Pegged loans allow borrower and lender to take a loan without the volatility of cryptocurrencies without the need of a stable coin.