Hello, our beloved readers! Today we will try to compare Tokenlend to major “P2P lending” players on ICO field. Actually, this comparison is not as accurate as desired, but most of our existing and future investors mentioned these projects during hot discussions in social networks.

First of all — Tokenlend is not P2P (Person-to-Person) platform, but a P2B (Person-to-Business) lending platform. Instead of projects mentioned above, Tokenlend users lend money to Loan Originators, who has already funded their private borrowers. From the one side — this way has less freedom to choose from available loans, but from the other side — it is less risky. Although, Lendoit, for instance, provides a tool to connect any borrower and lender, it has no responsibility in case of borrower default. Of course the best way to secure loan is to keep collateral using in-house facilities. This way was chosen by ETHLend and SALT. Ethereum smart-contracts can provide safe, transparent and relatively easy way to keep loan collateral represented by crypto assets during the repayment period. That’s why SALT and ETHLend are accepting only crypto.

This business idea is great, but only if exchange rates of cryptocurrencies are increasing. If rates are falling — collateral value can decrease significantly in a short period of time and lead to loan default. SALT project suffers from “margin call” more than ETHLend, because it allows to borrow fiat funds using crypto assets. However, this kind of loans can bring big profit to the lender if conditions are favorable.

Tokenlend has aimed to more conservative audience. Our platform will allow to lend fiat funds using crypto and fiat assets to the property-secured loans. Obviously, in this case we can’t keep collateral inside our system. But, we can establish legal relations between Tokenlend, Loan Originator and platform user. You may ask — “Where’s blockchain here?” It is used for keeping and processing all transaction records between parties. Using smart-contracts to manage loan repayments and keeping transaction records in distributed ledger is transparent, easy accessed and invulnerable to forging.

Although, Tokenlend utilizes decentralized architecture to provide business logic operation, it can’t be called “Decentralized App” at the moment. It differs from ETHLend, which exists as DApp from the very first day, because Tokenlend works with fiat currencies, real estate property objects and tightly connected with classical credit institutions. This needs more time to develop fail-safe integration processes and solutions for future partners. Only after completing this step and opening API for public, Tokenlend could become a truly decentralized.

As you can see, modern fintech market provides wide choice of financial solutions to invest crypto or fiat assets and receive stable income. For every wallet (crypto or fiat) and every risk/profit ratio there is a solution to meet investors needs.

Here in Tokenlend, we are waiting for those who want to diversify their crypto investment portfolio with asset, which will not be affected with cryptocurrency rate fluctuations and will provide stable long-term income for it’s holder.