ETHLend and ConsenSys Propose a new ERC-1068 Loan Standard for Smart Contracts
ETHLend is committed to create a smart contract standards for the financial industry. On that note we have been working on creating Loan Standard along with ConsenSys since few months and we are now proud to announce that we just published a draft version for Loan Standard called ERC-1068.
The underlying idea of the new ERC loan standard is to have a flexible and robust backbone for loan applications, which are build on top of the Ethereum network. The standard is quite basic to cover different lending instruments such as peer-to-peer lending, crowdfunding, uncollateralised lending and secured lending.
Using a common standard in Ethereum applications helps different applications to communicate and interact with each other. When a common standard is used, such as ERC-20 token standard, developers are able to create seamless ecosystem around the standard. For ERC-1068 it means that there could be in the future different applications such as secondary markets for loans, credit rating systems and decentralised hedge funds.
The standard allows the implementation of a standard API for loans within smart contracts. It provides basic functionalities to fund loan, accept the raised amount, payback the due, and recover the investment by lenders. Moreover the loan contract can have different optional features, like interest, loan as token, collateral, review borrower behaviour and risk analysis.
ETHLend will introduce the ERC-1068 on Enterpise Ethereum Alliance Financial Services Working Group and whenever we are in communications with financial institutions to receive feedback and to promote interoperability of lending on Ethereum network. ETHLend will use the new loan standard working with the R&D departments of financial institutions that are building lending applications on Ethereum.