Lendingblock --open exchange for cryptocurrency loans
Raising StarsWHAT IS LENDINGBLOCK?
Lendingblock is an open exchange for cryptocurrency loans, where borrowers and lenders are instantly matched in simple, safe and transparent way.Lendingblock is an open exchange for borrowing and lending cryptocurrencies and digital assets. It allows borrowers and lenders to enter into fully collateralised crypto vs crypto lending agreements. Lenders can earn incremental interest income on their long term investment in digital assets, while borrowers can use their digital assets as collateral to enable borrowing to support shorter term trading,hedging and working capital needs. Lendingblock is creating a parallel financial service for the crypto economy to securities lending in traditional capital markets,a market that has $2trn of assets on loan and generated $4bn of revenue in 2017.
MISSION
Lendingblock is a protocol and platform designed to enable and encourage borrowing and lending within the crypto financial system, bringing the economic benefits of lending (increased spending and growth, connecting capital supply and demand) to the distributed blockchain economy, but minimising the need for inefficient intermediaries that are unnecessary in the cryptographic asset environment.
Lendingblock is creating the market and financial infrastructure for securities lending in the crypto-economy. The value of securities on loan in the securitieslending marketplace has reached $2trn in 2017 this makes up 12% of all stocks and bonds in circulation. It is expected that the market of cryptocurrencies and digital assets will follow a similar evolution in the credit markets with regards to financing but with a faster rate of adoption given the transparency and fluidity of the market.
Lendingblock will be the first exchange for crypto asset backed loans that meets the needs of institutional and individual borrowers and lenders in the crypto-economy.
LENDINGBLOCK PLATFORM
Lendingblock is creating an open exchange for borrowing and lending crypto-assets. Holders of digital assets will be able to generate stable and secure returns without sacrificing the benefits of ownership, and borrowers who hold digital assets will be able to use these digital assets as collateral to borrow at market rates to support funding, hedging or investing strategies.
End Users
The end users of Lendingblock will be entities looking to borrow or lend cryptocurrency assets. These entities, whether retail or institutional will fall under two categories-lenders and borrowers.
LENDERS
Lenders using Lendingblock will include institutional lenders, such as asset managers, hedge funds, and family offices; and individual participants in “crowd lending” who can gain access to lending opportunities not currently available to them directly
1;will be able to generate incremental interest income from their portfolio of assets without sacrificing the long-term benefits of ownership; and
2.will have the security and protection of full collateralisation and automatic application of lending default terms.
BORROWERS
1.will be typical of users of existing securities lending, including hedge funds, investment managers, market makers, and proprietary traders;
2.will have a need to borrow digital assets for mutiple purposes, which may include
i.Shortselling-if a trader wishes to take a short position in the belief that the price of an asset will fall, they will borrow the assets and sell them at the current market, then buy those assets back in the future at a (hopefully) lower price to repay the loan;
ii.Hedging-a derivatives market-maker, for instance, may need to sell assets that it does not own to hedge a linked derivatives position, then borrow digital assets to meet its settlement obligation;
iii.Arbitrage-a trader may sell assets short against an offsetting derivatives position to take advantage of dislocation between cash and derivatives markets, for example ‘index arbitrage’ where offsetting positions are taken in a basket of securities and in the relevant index futures contract; or
iv.Fails-driven borrowing-if a broker or custodian has a settlement obligation but does not have the assets in place (perhaps due to operational problems or because its client has not made adequate arrangements to deliver the assets), it may borrow assets to ensure that it can meet its obligation and thereby avoid incurring settlement fail penalties.
3.will be able to access borrowing services that do not currently exist in the crypto economy at a price and fee structure that is transparent and based on market supply and demand.
The Borrower process has five stages :
1.Registration, in which prospective borrowers create an account and complete identity verification and screening;
2.Specification, in which borrowers complete profiles specifying details of the loan they are seeking, e.g. loan principal asset and amount, duration, maximum interest payable, and collateral to be pledged. After verifying that the collateral is available to prevent spurious offers, this borrowing request is then automatically matched to lending offers;
3.Initiation, in which the borrower places collateral into the LND smart contract and waits for lenders to place principal into the smart contract until the loan total is reached;
4.Servicing, in which the borrower makes scheduled payments that are distributed to the lenders by the LND smart contract, and as required adjusts the amount of collateral to reflect any change in value; and
5.Finalisation, in which the borrower completes repayment of the loan principal which is returned to the lenders, and the collateral is returned to the borrower by the LND smart contract, or in the case of default by the borrower the collateral is distributed to the lenders to cover their investment.
The Lender process has five stages:
1.Registration, in which prospective lenders create an account and complete identity verification;
2.Specification, in which lenders first complete profiles specifying what they are looking for, e.g. how much they wish to lend, for what duration, desired minimum interest rate, and acceptable collateral. After verifying that the principal is available to prevent spurious offers, this lending offer is then automatically matched to loan profiles that meet their requirements;
3.Initiation, in which once borrowers have submitted collateral, lenders place loan principal into the Lendingblock smart contract, at which point the principal is sent to the borrower;
4.Operation, in which the lender receives scheduled interest payments from the LND smart contract; and
5.Finalisation, in which the lender receives repayment of their principal, or in the case of default by the borrower receives the collateral to cover their investment.
COLLATERALIZATION APPROACH
Loans arranged via Lending block will be collateralised to provide lenders with protection against borrower default. The approach to collateralisation includes
Type of collateral offered/received
When making a borrowing request, borrowers specify the type of collateral they are offering as security;
1.When making a lending offer, lenders may accept any form of collateral, or optionally elect to specify which forms of collateral they are willing to accept or exclude;
2.The algorithm for matching borrowers and lenders will exclude lenders who have elected not to accept the specific type of collateral offered by the borrower;
3.The type of collateral does not impact the interest rate of the loan which is based on the asset being borrowed, but it may impact the level of collateral required for a loan, or impact the amount that can be borrowed;
4.It will not be possible to alter the type of collateral during a loan.
TOKEN SALE
In which the Lendingblock (LND) token, token sale process, and launch plan will be described.
TOKEN DESCRIPTION
In which the Lend ingblock token, its uses, and economics are described.
1.LND will be an ERC-20 compliant token.
2.The LND token functions as the currency of use within the Lendingblock economy. Interest payments for loans paid by borrowers and received by lenders will made using LND. For example, a loan of BTC secured by ETH collateral will result in lenders being paid LND by the borrower. Lenders can then use this earned LND to pay interest on loans of their own, or sell the LND in a secondary market to other borrowers;
3.Token economics
4.The valuation of LND can be demonstrated to be driven by four factors:
5.Demand (D) to purchase LND for payment by platform users, which is directly related to the volume of lending activity, eg more and larger loans will result in greater value of LND purchased by lenders;
6.Length of time (T) that platform users hold LND before exchanging or reusing them, eg a longer holding period will result in fewer LND available for sale at any point in time;
7.Total volume of LND in circulation ©, eg for a given total market valuation, the value of a single LND token is inversely related to C; and
8.Investor sentiment (S), which is related to opinion about the growth of the Lendingblock economy
9.Borrowers will be able to pre-purchase LND to meet interest payments at the start of the loan agreement, to allow them to lock in the cost of the interest payments. This has the effect of lengthening the time borrowers hold LND to the average of the loan duration and payment frequency, for example a borrower taking a ninety day loan with payment frequency of thirty days would make equal payments after thirty, sixty and ninety days, meaning that LND bought at the start of the loan would be held on average for sixty days. In contrast, if borrowers purchase LND to make interest payments as they are due, then the holding period would be minimal.
TOKEN SALE PROCESS
1.Size of Issue:1,000,000,000 LND will be created during the token sale.
2.Total cap:Following the completion of the token sale no further issues will be made, capping the volume of LND at 1,000,000,000
3.Fundraising target
4.A hard cap or ceiling will be set at the ETH equivalent of USD 10,000,000 at the start of the sale process.
5.A soft cap or floor will be set at the ETH equivalent of USD 5,000,000 at the start of the sale process.
6.Failure to reach the soft cap level will result in ETH being returned to purchasers,once expenses incurred in the token sale have been deducted.
7.If funds raised are between the hard and soft caps, unsold LND will be destroyed.
8.Total circulating supply:600,000,000 LND (60% of total supply) will be offered for sale during the token sale process, in three phases:
9.Private sale phase will conducted under the following conditions:
10.The funding cap will be USD 500,000
11.25,000,000 LND will be offered during the private sale;
12.A 1:1 bonus award will apply to the private sale period,so that an additional 25,000,000 LND will be awarded to participants;
13.The effective price of each LND will be USD 0.01 ( USD 500,000 / 50,000,000LND);
14.Bonus LND awarded will be subject to a sixty day holding period;
15.There will be a set participation level of USD 50,000 per participant for the private sale;
16.The private sale period concluded at 21:00 GMT, Friday January 26th, 2018.
17.Pre-sale phase will be conducted under the following conditions:
18.The funding cap will be USD 7,500,000
19.375,000,000 LND will offered during the pre sale;
20.A 5:1 bonus award will apply to the pre-sale period, so that an additional 75,000,000 LND will be awarded to investors;
21.The effective price of each LND will be USD 0.016667 ( USD 7,500,000 /450,000,000 LND);
22.LND purchased during the pre sale period will be subject to a thirty day holding period;
23.Bonus LND awarded will be subject to a thirty day holding period;
24.There will be a minimum participation level of USD 25,000 and maximum participation level of USD 500,000 for the pre-sale;
25.The pre-sale period will commence at 15:00 GMT Saturday April 7th, 2018; and
26.The pre-sale period will conclude at the earlier of 15:00 GMT Saturday April 14th,2018 or when the 375,000,000 offered LND are sold.
27.Main sale phase will be conducted under the following conditions:
28.The funding cap will be USD 2,000,000
29.100,000,000 LND will be offered during the main sale;
30.There will be no minimum participation level but a maximum participation level of USD 25,000 for the main sale;
31.The effective price of each LND will be USD 0.02 ( USD 2,000,000 / 100,000,000LND);
32.The main sale period will commence at 15:00 GMT Sunday April 15th, 2018; and
33.The main sale period will conclude at the earlier of 15:00 GMT Sunday April 22nd,2018 or when the 100,000,000 offered LND are sold.
34.Growth fund:150,000,000 LND (15% of total supply) will be held as a growth fund, to be used at the discretion of the management team to increase the utility of the platform in a way that benefits users and investors. Potential uses of this reserve may include but are not limited to
35.Encouraging community development of complementary end user tools that allow borrowers and lenders to access the platform through the Lendingblock API;
36.Raising additional funding for subsequent platform extension where user demand warrants;
37.Establishing partnerships with complementary businesses;
38.Providing operational funding during the initial period after launch before trading revenues are sufficient to cover costs; or
39.Providing a LND liquidity source for borrowers and lenders needing to purchase or sell LND tokens.
40.Team, partnerships and bounty:250,000,000 LND (25% of total supply) will be distributed to the founding team, employees hired in first 12 months, advisors,and pre-ICO service providers including participants in marketing and securitybounty programs.
41.15% will be allocated to the Lendingblock founders;
42.5% will be allocated to Lendingblock employees hired in the first 12 months;
43.5% will be allocated to advisers, service providers, and bounty programs.
44.Vesting:The following vesting schedule will apply to founders and employees toensure long term commitment and alignment of incentives with token holders:
45.20% vest on latter of issue or hire date;
46.Additional 20% (40% cumulative) vest six months after latter of issue or hire date;
47.Additional 20% (60% cumulative) vest twelve months after latter of issue or hiredate;
48.Additional 20% (80% cumulative) vest eighteen months after latter of issue or hiredate;
49.Remaining 20% (100% cumulative) vest twenty-four months after latter of issueor hire date.
50.Redemption process
51.LND tokens will be distributed to purchasers immediately and made transferable within seven days of the scheduled end of the token sale process.
52.Bonus LND tokens will be issued to pre-sale purchasers thirty days after the scheduled end of the token sale process or the completion of the sale provided purchased LND tokens have not been sold.
THE TEAM
The Lendingblock team is comprised of founders, employees, and advisors united by a shared vision, and by outstanding academic and practical experience in financial services and technology.
FOUNDERS
Steve Swain, CEO and Co-founder
•University of Adelaide BSc Mathematics and Computer Science
•Harvard Business School AMP
•Investment Bank technology Managing Director at Lehman, Macquarie, UBS andCredit Suisse
•Deloitte Partner, specialising in capital markets technology strategy
Linda Wang, Co-founder & COO
•Cambridge University MA in Land Economy, UCL MSc in Computer Science,
•Blockchain consultant with Deloitte
•Entrepreneur First alumnus
•Mortgage lending startup Founder & CEO
BUSSINESS TEAM
Bryan Du, Product Manager
•Electronic and algo trading systems product and business manager at Credit Suisse, RBS, Deutsche Bank and UBS
•Cass Business School Investment Management Finance with Distinction Damian Williams, US Business Development
•20 years of financial services experience
•BS summa cum laude from Mercy College and an MA and Ed.M in Counseling Psychology from Columbia University.
•Equity derivatives trader at Nomura Securities, specializing in arbitrage
•OTC equity market maker and Steve Cohen’s equity trader at SAC Capital.
•Partner, portfolio manager and managing director at several New York based hedge funds. He has also been a principal and managing partner at two funds, along/short equity fund and a real estate fund.
•Investor in robotics and blockchain
Jj Frizell, Social Media
•UCL MEng Chemical Engineering
- Blockchain and cryptocurrency enthusiast Technology
Julien Klepatch, full stack developer and Ethereum smart contract engineer
•MSc in Computer Science, Masters in Finance from HEC Paris
•Cross Asset Financial Engineer, Societe General Investment Bank
•Broker and Programmer for HK Market maker, Qantex Capital Markets
- Ecommerce startup founder
QX Lee, Smart Contract and DApp Developer
•BSc Electrical Engineering, First Class Honours, National University of Singapore
•Analyst at Deutsche Bank
- Founder of blockchain R&D company and Cofounder of Codetract, Ethereum smart contract development company
Alberto Sonnino, cryptography expert
•PhD in Security Engineering at UCL
•Masters in Electrical Engineering from UCLouvain, Masters in Electrical and Information technology from Kalsruhe Institute of Technologies, Masters degree in Information Security from UCL
- Expert on privacy enhancing technologies and distributed ledgers
David Brazdil, security expert
•Cambridge University MSc, Computer Science
•Google Software Engineer
- Entrepreneur First alumnus
CONCLUSION
Lendingblock is a crypto-focused peer to peer lending marketplace. You can lend or borrow fully collateralized crypto-to-crypto loans.
Lendingblock is unique in that it is the first to implement a cross-blockchain value transfer system. You can lend your tokens and coins to receive interest, or use them as collateral to secure peer to peer loans throughout the Lendingblock market.
Get more about lendingblock by clicking the links below:
🚨WEBSITE🚨: http://lendingblock.com
🚨TELEGRAM🚨: t.me/lendingblock
🚨TWITTER🚨:https://twitter.com/lendingblock
🚨FACEBOOK🚨:https://www.facebook.com/lendingblock/
🚨REDDIT🚨:https://www.reddit.com/r/Lendingblock/
Bitcointalk profile link: https://bitcointalk.org/index.php?action=profile;u=1930778
Author- Raising Stars