Crypto Citizen Review: SALT lending, win win loans.

The Crypto Citizen Review is a sub series of my articles where I take a deeper look into a certain interesting company, or cryptocurrency. My thoughts are just opinions and speculation and not investment advice.

My research involves studying their fundamentals, the team behind it, GitHub review, roadmap, timing and the idea.

ICOalert.com is a great website. It lists past and upcoming ICOs with links to their websites and allows users to request reports. This is where I found SALT lending.

When I choose an ICO to invest in, I like the grand ideas. Companies with the potential to set trends, create new spaces for more growth, the big ideas. Super computing, global messaging, remittances and payments, access to loans, insurance etc.

SALT Lending is blockchain backed loans. What that means is you put up your crypto assets as collateral and you get fiat loans in USD, EUR, RMB. They have future plans to increase both the number of assets and fiat you can put up and receive.

Because of SALT you don’t have to sell your assets in order to gain some liquidity, you can get cash for your assets, and at the end of the loan terms get your assets back.

What all this equates to is win/win loans. This is not predatory lending, and with no credit checks needed. If a borrower runs away with cash, the lender can liquidate the assets. When the loan is paid back the borrower gets their assets back, if it is something like Bitcoin, most likely it would have appreciated a lot by the end of the term. So SALT lending helps with both loans and savings.

SALT (Secured Automated Lending Technology) is one of those unimagined ideas that the new internet of money has created. There are a lot of crypto investors now and this is a great way for them to leverage those assets, from using small loans to pay off credit cards, to buying a home. (White paper)

The SALT dashboard

All the above alone was enough to really interest me in their project. Then I learned that Erik Voorhees in on their team as the Board Director.

Erik, as I mentioned in my previous article about Cryptocurrencies making us better at money, is the CEO of ShapeShift.io and Prism. This guy knows business and the crypto world and it is huge that is he on the SALT team advising them.

Erik Voorhees

The SALT tokens give users membership access to the platform. There is a fixed total supply of 120 million. Currently 1 SALT($10) gains you access up to $10k. Premier plans with 30 SALT gives you access up to 100k. Enterprise plans give you access for 100k and up.

The SALT tokens will make it to exchanges. However, whatever the price fluctuates to, they plan on selling memberships around $10.

Road Map

Big Questions

What happens if the market value of my asset changes?

Due to the volatile nature of cryptocurrency it is natural to wonder how that would affect blockchain collateralized loans. SALT cares about maintaining at least an 80% equilibrium between the loan amount and value of the asset.

If the value of the asset appreciates a lot, the borrower has the option of obtaining additional funds, or simply not do anything.

However, if the value of the asset drops significantly, then a margin call will be made and the borrower will be asked to put up additional assets to bring the loan back to equilibrium. There is also the option for the lender to liquidate some of the assets to also help bring the loan back into equilibrium.

If the value of your blockchain asset rises, you may have the option to: add the increased value to the principal of the loan for additional capital from the lender or do nothing but continue to make payments according to the terms of the Lending Agreement. If the value of your blockchain asset drops enough to cause a breach of the agreed upon loan-to-value (LTV) threshold, you will be contacted by SALT Lending for a Collateral Maintenance Call. You will be given an opportunity to either add additional collateral or make an additional principal payment, bringing your collateral account balance back into equilibrium. The options available to you depend on the loan terms agreed to at loan origination.

Does SALT use member collateral for anything?

Collateral deposits are stored in our proprietary, multi-signature Secured Automated Lending Technology. We do not lend out your collateral. Our key structure and business architecture ensures that your collateral is safe. Even if SALT were to go out of business, the collateral belonging to our customers would be safe and accessible.

They have a great FAQ with more questions answered, their slack channel is also very active with direct team communication.

I’ve participated in their pre-sale and intend on using their services.

You can join SALT here.

The SALT Lending pre-sale is over. $10 is their target cost for a membership token.

If you like my articles, you can donate with Ethereum: 0xC11f8E7C1dc8B69575661aF1b175803B5f775f5f

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