Decentralized nature of Lend at Hodl Hodl
In this article we will discuss the aspects of decentralization on Lend at Hodl Hodl. First of all decentralization refers to the redistribution of decision-making away from a central authority and following the ethos of Bitcoin we try to keep our services as decentralized as possible. Here are the main features of our platform:
Non-custodial
At no point Lend at Hodl Hodl can take possession of user’s funds. Bitcoin collateral is safely kept in the escrow address where two private keys out of three are needed to move the funds. We have only one key while the other two are kept by the borrower and the lender.
This essential feature separates us from the most lending services in the space. Rehypothecation of funds is carrying inherent risk and the market has already seen the consequences of that with a few companies that went bankrupt.
Custom
Lend at Hodl Hodl allows lenders and borrowers to create offers with their preferred interest rates, duration, and loan-to-value ratios.
By providing all necessary tools for lenders and borrowers to meet, we facilitate free market rate formation. It is extremely exciting case study that we can witness, when no central banks or other authorities are setting artificial interest rates. Pure market dynamics is showing what is the price of credit at any given moment.
Pseudonymous
To register you need to sign up with an email address, follow the confirmation link and that’s it. Now you can engage in contracts right away! Excessive collection of personal information inevitably leads to degradation of privacy and is putting users at risk of not only digital crime but also physical attacks.
Because there are no background, or credit history cheks, Lend at Hodl Hodl facilitates fare and inclusive access to lending market. While on the side of legacy finance we have a banking sector that is discriminating people based on the documents they can provide, their backgrounds and age.
No single point of failure
In an unlikely event of Lend at Hodl Hodl website not being accessible, there is a tool available to create, sign and broadcast a refund transaction from the escrow without our interface.
Doomsday software also know as the Escrow extraction tool is an important step towards mitigating the risk of single point of failure, in this case it being our website. We recommend both contract parties to exchange contacts outside of our platform and save all necessary information about the contract, so that they are able to extract bitcoin from the escrow without an involvement from our side, if it is ever to be needed.
Transparent
Both parties can independently verify the amount of bitcoin locked in the escrow, as it is recorded on a public ledger, ensuring transparency and immutability. Checking the collateral amount can be done by using freely available blockchain explorers or with your own Bitcoin full node. This transparency builds trust among participants as they can verify transactions independently.
In addition Lend at Hodl Hodl is very clear about the fee structure and is automatically breaking it down for the users to see.
Globally Accessible
Offers are accessible to anyone, regardless of their geographical location. This opens up lending and borrowing opportunities to individuals who may not have access to traditional financial services.
Censorship Resistant
Lend at Hodl Hodl is resistant to censorship and government interference since it operates on decentralized network. This ensures that individuals can access lending and borrowing services without fear of censorship or arbitrary restrictions.
Resilient to Systemic Risks
P2P lending is less susceptible to systemic risks such as bank failures or economic crises since it does not rely on centralized institutions. This resilience provides stability in unpredictable economic conditions. Moreover, all loans are over-collaterlaized, meaning that there is no fractional reserve practices taking place.
Reach us
- Hodl Hodl trading platform: hodlhodl.com
- Lend at Hodl Hodl: lend.hodlhodl.com
- E-mail: support@hodlhodl.com
- Blog: hodlhodl.medium.com
- Twitter: twitter.com/hodlhodl
- Telegram: t.me/HodlHodl
- Reddit: hodlhodl.reddit.com
- Facebook: facebook.com/HHodl
- Youtube: youtube.com/c/HodlHodl
- Nostr: npub1yul83qxn35u607er3m7039t6rddj06qezfagfqlfw4qk5z5slrfqu8ncdu
HODL!
