Start journey with LOTS — Product Tutorial (II)
General Information About Loan Offer Module
We launched a new module, i.e. Loan offer, under which lenders could initiate lending offers (including setting collaterals and interest rate) via a decentralized and secure marketplace. The whole process is performed on smart contract: products run precisely without any third-party interference or fraud.
Lenders on the platform currently could offer a secured loan that
1. borrowers get funded by putting certain ETH as collateral; or
2. borrowers get funded by putting stable coins or certain ERC20 tokens as collateral;
Smart contract holds ETH and collaterals that enabling 100% safety.
Borrower gets collateral back after repayment
Early repayment is allowed without penalty
Lender claims collaterals when default happens
Collaterals Standards
LOTS currently only accept ERC20 based token as collaterals. LOTS updates the list of accepted token over the time. Let us know if your favorite ERC20 token that is not on the list.
The standards LOTS apply for selecting tokens as collaterals are:
- Listed on at least two big exchanges
- At least three month trading history
- Relatively low volatility
- Good liquidity
What Fees Does LOTS Charge?
LOTS charges both borrower and lender 0.01 ETH fee for providing loan funding and repayment services. Users will also be charged gas fee by Ethereum network during lending process.
Step 1 — Open the website (https://kun.lots.org), download and install Metamask (https://metamask.io/) in Chrome/Opera browser
Step 2 — Create an account or import account in Metamask
Step 1 — Create an empty contract
Step 2 — Deposit LOTS tokens to activate your contract: make sure you have 100 lots tokens in your wallet account
Step 3 — Set loan terms: select terms of loan and approve relative parameter data to contract address. (Example: a loan offering of 20 OMG for 7 days, with MPR 0.5%, and ETH as collaterals with LTV of 50%)
Lenders can set their loan offering up to 7 days, after that it expires
Step 4 — Press Create button to place funding tokens to contract address and wait for borrower(s) to lock your loan offering.
Step 1 — Browse loan offerings in “View All Offers” session and click “Borrow” button of loan that you want to borrow
Lock the chosen loan
Step 2 — Move the scroll bar to set your desired loan amount; Click “Borrow” to send corresponding ETH as collaterals with other parameters to contract address. Loan contract would also charge fees (make sure your wallet have enough ETH)
Step 1 — Go to “My loans” and select the loan you want to repay under “my borrowed loans”
Ensure you have enough loan assets and ETH in your wallet
Step 2 — Click “Approve Repay” button, then click “Repay” or “Pay installment” to allow loan contract transfer loan assets.
Your loan is fully paid off and you get collateral back.
Reset the contract for your next use.
Is early repayment allowed?
Yes, it is up to borrowers and there is no penalty.
As a lender, you are only able to claim collaterals if loan is in default: Move the scroll bar to the rightmost side and click “withdraw” to claim collaterals back.
Before claiming collaterals, either lender or borrower should validate price of collaterals.
If you have further questions or any interests to partner with LOTS on our product, contact us by filling in the REQUEST on our website through the ‘Product’ channel on the navigation bar. (www.lots.org)
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