As we already know, Lends is a decentralized loan marketplace where users can participate and contribute as lenders and borrowers. It is designed to ensure borrowers find ready lending pools with terms that optimally align with their loan interest.
This thread covers how lends operates.
Let dive in:
1. Lending Pool Creation:
- Lenders initiate the process by creating lending pools. These pools serve as the foundation for borrowing and lending activities.
- Customization: Lenders define their terms, including interest rates, loan durations, and other relevant parameters.
- Seed Your Pool: Lenders allocate their chosen amount of lending capital to the pool.
- Launch Your Pool: Once set up, the customized lending opportunity becomes available to potential borrowers.
2. For Lenders: Creating Your Lending Pool
- As a lender on Lends, you play an active role in shaping the market.
- Define Your Terms: Specify the interest rate, loan duration, and other terms for your lending pool.
- Seed Your Pool: Allocate your desired capital to the pool.
- Launch Your Pool: Make your lending opportunity accessible to borrowers.
3. For Borrowers: Securing Your Loan
- Borrowing on Lends is straightforward and secure.
- Browse Lending Pools: Borrowers explore available lending pools to find one that matches their needs.
- Contribute Collateral: To secure a loan, borrowers deposit collateral into the chosen pool.
- Receive Your Loan: Once the collateral is confirmed, the loan is issued.
4. The Repayment: Repaying Your Loan
- Lends offers a flexible repayment process, empowering borrowers:
- Full Repayment: Borrowers can return the entire loan amount along with interest to reclaim all their collateral.
- Partial Repayment: Borrowers have the option to repay a portion of the loan, receiving a proportional amount of collateral back.
- Default: If a borrower chooses not to repay, they forfeit their collateral but retain the borrowed funds.
Lends ensures a transparent and user-friendly experience for both lenders and borrowers, promoting financial inclusion and control.