This is our review of the INLOCK Token and the lending platform built around it. The project has been built by a mostly Hungarian team who are known for their precision and knowledge locally.



Project Stats

White paper: https://ico.inlock.io/wp-content/uploads/2018/06/Whitepaper_V1.06.pdf

Total token supply: 4.400.000.000 ILK (ERC20 Token)



Timeline: Start Date: 15/09/18 | For more up-to-date information please visit INLOCK’s website



Token distribution date: Immediately after contribution, locked till the end of public ICO sales

Token percentage for investors: 75%

Token Reserve Split: 10% Team+ 10% Advisors, 5% Marketing

Start Price: 1 USD for 100 ILK tokens

Funding target / Soft cap: 15 m USD

Funding cap / Hard Cap: 27.5 m USD

Project premise

Borrowers

Borrowers can specify loan amount and duration criteria on the Inlock platform, along with tolerance for exchange rate fluctuation. Since the borrower provides the collateral, the process is fast and seamless without any need for additional credit assessment, giving way to rapid and flexible convertibility.

The platform enables institutions to enter new markets previously out of their reach. The lending process requires a similar level of AML/KYC adherence as traditional lending.

Lenders

Lenders looking to offer a loan can do so – with the appropriate permits – in a risk free environment. Due to the fact that collateral can be exchanged into FIAT currency immediately, the risks involved for lenders are almost identical to a bank deposit, while earning higher interest rates. Credit transactions are carried out between the two parties directly, while Inlock’s platform as an intermediary ensures that the parameters of the agreement are formally recorded. Each of these terms are included in a smart contract, ensuring that every credit contract between the parties is irrefutable and impossible to manipulate.

How advanced is the project?

The idea of the project was conceived in September 2017. Their MVP is ready for testing on their website. Their smart contract auditing was carried out by Coinfabrik in July 2018, and they found no major issues. They just began their awareness campaign.

Here is a comparison of the current lending platforms and the features of INLOCK that was taken from the project website:

What are the tokens used for and how can token holders make money?

Except for the interest, all costs of the platform are paid in ILK tokens, making the ILK token an integral component of the Inlock ecosystem. ILK tokens can be purchased directly from the platform, or during the multi-step token sale. Inlock will be listed on Exchanges as partnerships form.

Team

Inlock’s team mostly consists of Hungarian influencers, blockchain specialists, and international advisors. The founder, Csaba Csabai is a leading blockchain expert and possibly the most iconic crypto influencer in Hungary. Csaba has been editing a very popular blockchain technology blog since 2013.

Opportunities

Borrower highlights: The majority of today’s cryptocurrency collateral based lending solutions work with their own fixed liquidity pool, charging a whooping 11-15% APR on their loans. Taking out loans on their platform requires high overcollateralization. Using Inlock, Borrowers are able to fully customize the loan according to their preferences, making it the only platform that lets market competition set interest rates. Inlock as an intermediary helps Borrowers find the best lending partner. The minimum collateral is 0.2 BTC. Inlock is the only platform where the borrower is able to set a very low (106%) minimum overcollateralization level. Inlock allows Borrowers to replace the collateral in a running contract (switch ETH to BTC for example), and reduce or increase the collateral value based on market movements during the contract period.

Concerns

There are advanced competitors in the lending platform space, such as SALT and NEXO. These platforms charge higher fees compared to Inlock’s preliminary simulations of loan fees. Also, competitor’s solutions for providing liquidity (maintaining a centralized liquidity pool) is highly limited due to their business model.

Conclusion

Overall, we think Inlock has what it takes to make it big. Standing out of the thousands of ICO’s being created in this frenzy is not an easy task, you need real solutions to appeal to the masses. Their well-developed whitepaper is just one of the examples that illustrates; the team behind it put some serious thought to how they’re going to fly their ship into the lending space.

Head over to INLOCK’s website if you are interested in further information regarding the project.