Nuo Lend is now live on Kovan TestNet

Varun Deshpande
Nuo Network
Published in
3 min readApr 24, 2018
Nuo Lend

It’s been 4 weeks since our app went live on the playstore and we now have over 35,000 users across 30+ countries using the app. Users from around the world are using Nuo Wallet as their preferred way of storing crypto currencies and making peer to peer transactions. But that was just the first step towards achieving a bigger goal.

Any bank is incomplete if it can’t lend. We have been working on decentralised global lending for few months now and today we are proud to announce that Nuo lend is now live on kovan testnet.

How to get started?

  1. Go to our lending product at kovan.getnuo.com
  2. Install Metamask on any browser (Firefox preferred)
  3. Login to Metamask and switch to Kovan testnet
  4. Request test funds (TETH and TST) from our faucet
  5. Use the test funds to apply for a loan or fund a loan

How does it work?

Nuo Lend provides a platform to enable collateral backed loans in a decentralised way. Users can use their crypto assets as collateral and get a loan in the form of primary crypto currencies. This enables you to HODL your crypto assets and still get liquidity.

Nuo neither underwrites the borrower nor sets an interest rate. The borrowers choose an interest and repayment structure best suited for their needs and the lenders fund a loan based on the returns they expect. Nuo enables these lenders and borrowers across the globe to come together and transact with each other in a completely trustless environment.

This is possible since the entire platform is driven by smart contracts and governed by pre-defined conditions which are always publicly available. Here is one of the loans completed on the platform:

https://kovan.etherscan.io/address/0xe011318a1c97ddb827b417b06a6f8188672a0fde

What if borrower defaults?

If the borrower is unable or unwilling to pay an instalment, the loan defaults. In such a case, the collateral left in the smart contract can be withdrawn by the lender. At the time of creating a loan application, the borrower transfers collateral which is 1.5x the loan amount.

Due to price fluctuations, the collateral value in the smart contract keeps changing and if the price falls below the loan amount, the collateral becomes available to the lender for withdrawal. If the lender withdraws this collateral, the loan defaults.

Loan contract journey

We have created the lending platform keeping in mind the interests of both the borrowers and lenders and being sensitive to their needs. A quick look at the loan contract journey will show you how we have been able to do this in a completely transparent way.

  • Creating and funding a loan
  1. A smart contract is created with loan application details
  2. Borrower transfers the collateral to the smart contract
  3. Loan application available publicly ready to be funded
  4. A lender funds this loan application in ETH
  5. Borrower withdraws loan amount in ETH from the smart contract
  • Repaying an instalment
  1. Borrower transfers the 1st instalment in ETH to the smart contract
  2. Lender withdraws this instalment in ETH from the smart contract
  3. Borrower withdraws the collateral proportional to the 1st instalment paid

Our goal is to create the largest global lending platform in the world and collateral backed loans are just the first step in achieving that. In the coming month, we plan to go live on the mainnet and launch Nuo Lend on our app.

As crypto currency adoption increases globally in years to come, we would evolve our lending model and introduce more products that are decentralised and transparent. Let’s build a global bank of the future, together.

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Varun Deshpande
Nuo Network

Co-Founder of Nuo | Building the Future of Debt Markets