Step-by-step guide for using Nuo Lend Platform
This is a step-by-step guide as to what you need to do to setup your environment for our Nuo Lend platform — Orion and how you can borrow or lend Ether on it. For info on what this product is and its use-cases, please click here.
Please note that this product is only in beta and you can only use this on the Kovan test network.
Setup the environment
- Go to kovan.getnuo.com
- Install the MetaMask extension on Firefox(preferable), Chrome, Opera or Brave browser from metamask.io
- Click on the MetaMask plugin on the top right corner of your browser and Login or Create a new account on the MetaMask extension and go to the Kovan Test Network.
Now, you are ready to start your journey on the Nuo Lend platform. Reload kovan.getnuo.com and explore the existing loans and the rest of the platform. Since this is in the Kovan Test Network, we have given an option for you to receive TETH(Test Ether) and TST(our Test Token) from this platform itself.
Borrower
As a borrower, you can apply for a new loan by pledging some collateral in any supported ERC20 tokens. Here are the steps to follow to start to borrow Ether.
Step 1
Request test fund(TST) from our faucet by clicking on the plus(+) icon on the left panel of the screen. You will see a text string stating:
Request submitted successfully
Step 2
Click on “Apply for a Loan” on the top right corner of the screen and fill in your loan offer details. At this stage, you need to set the various parameters of your loan offer. You can set the type of the token you will be pledging your collateral with(currently only TST is supported-we will add support for real ERC20 tokens soon), the loan amount that you wish to borrow in TETH, the premium you are willing to pay for the lent TETH and a few other details of the loan offer. Please note that in order to incentivize the platform for both borrowers and lenders, we have kept the collateral amount required to be fixed at 1.5x of loan amount.
Step 3
Click on Next and a MetaMask pop-up should open up(If this doesn’t open, please click on the MetaMask extension icon on the top right corner of your browser). This pop-up contains info to create the smart contract for this loan offer. You can review the details here and click on Submit to wait for the smart contract to be created. You can click on the transaction hash and check it on the blockchain explorer as well.
Step 4
Once this is done, you will need to Approve to pledge your tokens towards the smart contract by clicking on the Approve button and clicking Submit on the MetaMask extension. Finally, you will need to transfer the collateral tokens into the smart contract by clicking the Transfer button and clicking Submit on the MetaMask extension.
Step 5
Voila! Loan offer has been created. You can now review your successfully created loan offer details. You can also click on the contract address to go to the blockchain explorer to view your loan offer smart contract on the public blockchain. You can also check out additional loan offer details on this screen. Now, it is time for you to wait for a lender to fund this loan offer. You can cancel this loan at any time(before the loan is funded) if you want to take back your pledged collateral tokens.
Once a lender has funded your loan, you will get an option to withdraw that funded Ether. Click on the Withdraw Debt button in the same screen and submit that transaction via MetaMask to get your desired amount amount(2 TETH) in your Kovan Test Network Ether wallet.
How to repay the loan
In the beta version, you will need to pay your instalments on/before time in order to not default on your loan. We will be sending out email notifications to you once this moves out of beta.
To pay your instalments, go to My Loans section and select the loan that is due for repayment. Scroll down to the Additional Details section of the screen to view the Pay action button. Click on Pay and Submit the transaction via MetaMask to pay your instalment.
Finally, you can click on Withdraw Collateral button to get back the collateral into your original wallet-from which the collateral was funded.
Lender
As a lender, you will be able to earn a significant premium on the amount that you are willing to lend while still ensuring that you get back your principal at least due to the collateral backed lending, governed by the smart contract. Here are the steps to follow for lending your Ether.
Step 1
Request test Eth (TETH) from our faucet by clicking on the plus(+) icon on the left panel of the screen. You will see a text string stating:
Request submitted successfully
Step 2
Go to the New loans section and select the loan offer that you want to fund based on the premium, collateral token type and the tenure offered.
Step 3
After selecting the loan offer to fund, review the loan offer’s additional details and click on Fund Now button to fund this loan. A MetaMask pop-up will open which will require you to transfer the Ether that was asked for in the loan offer selected by you. Once you Submit that transaction, the loan screen will show you that action is pending from the borrower’s side. The borrower will have to withdraw this lent Ether into his wallet.
Step 4
Once the borrower pays the 1st instalment, you will get an option to Withdraw Payment your principal amount. Or you can also withdraw the repaid instalments clubbed up instead of withdrawing them one by one. You also need to click on Submit in the MetaMask notification. Be rest assured, due to the terms in the smart contract, that you are going to be the only recipient for the repaid instalments by the borrower.
Step 5
If the borrower repays all the instalments on/before the due date, then you will get an option to withdraw all your lent Ether along with the premium that the borrower has paid.
But, in case the borrower has defaulted on any of the instalment repayments, then you will be able to withdraw the pending collateral tokens using the Withdraw Collateral.
Go lend janta!
