ETHLend Introduces LEND Token and Announces Its Pre-Sale ICO

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by Maria Konash · 3 min read
ETHLend Introduces LEND Token and Announces Its Pre-Sale ICO
Photo: ETHLend

ETHLend, a decentralized p2p lending application, announces pre-ICO to develop a lending market open for people globally using blockchain technology.

ETHLend, a decentralized p2p lending application built on top of the Ethereum Network, uses blockchain technology to develop a global lending market where borrowers and lenders from all parts of the world will be able to participate in lending. ETHLend’s team has revealed details on its upcoming pre-ICO, which is scheduled on September, 25 and is planned to last till October, 25.

Over a month prospective contributors will have a chance to participate in pre-funding by buying LEND tokens, the main utility function of which is to provide the investors with ability to use it for paying deployment fees on ETHLend with a 25% discount compared to ETH. In addition, the participants of pre-token sale will receive 20% bonus tokens as a reward for early contribution.

In order to guarantee the overall token’s stability, ETHLend will use 5% + additional 1 to 5% (calculated depending on the previous year’s growth) of the application deployment fees to buy back LEND from the market thus maintaining the value of LEND token. It will result in total LEND supply decrease and, correspondingly, in the following increase of the percentage of the token holders ownership.

The funding target sum concerning the pre-token sale is 2 000 ETH or 60 000 000 LEND, which makes 6% of the total amount to be sold. These funds will be used for supporting further research and development of the lending application. The pre-sale will also serve as kind of preparation for the official Initial Coin Offering, which will start on November, 25, 2017 and end on December, 9, 2017 or when the cap is reached.

The funding target of the official ICO is 37 600 ETH, the price of which will change in terms of LEND throughout the sale period. In such a way, first 200 000 000 LEND tokens will be sold at a rate 27 500 LEND = 1 ETH (price includes 10% bonus tokens), next 100 000 000 LEND – 26 250 LEND = 1 ETH (price includes 5% bonus tokens), and the remaining – 25 000 LEND = 1 ETH.

When speaking about application’s aims and advantages it should be noted that ETHLend is to solve several key issues, including ones regarding collaterals (last month ETHLend was about to deliver lending without the need to use them), decentralized credit rating and exchange volatility risks. It is also believed to provide a transparent and global lending market, as well as to erase interest rate differences between countries making local lending markets more liquid.

According to the ETHLend’s team, their application differs from most blockchain startups by the fact that they introduced their alpha release in early May this year, based on which they later created detailed White Paper describing how decentralized lending might revolutionize the whole lending industry.

Blockchain News, Editor's Choice, News, Token Sales
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