How ETHLend works?

Simply put, this is a platform or marketplace where borrowers can post their loan requests while lenders can fund the requests, and at the end, the borrowers pay back the loans plus some interest and the lenders get back the principal and interest.

Here is their most recently released version — https://app.ethlend.io.

As a borrower —

You can request to create a new loan on the platform. I’m not in need of a loan right now, so to demo the next steps, I borrowed some snapshots from the official example.

Choose ETH or USD pegged ETH, and the latter is explained on the image above. Click “Create” and then confirm on MetaMask.

Once the loan request is created, you can continue to set the loan’s detail — collateral, term, installments, loan amount and premium we are willing to pay to get the loan. The loan amount is limited by loan-to-value ratio(65%) which means we cannot borrow more than 65% of the value of the collateral. Then “Set data” and confirm on MetaMask.

Next you need to send the collateral tokens, to the loan contract address above. And the Loan Flow will become “Waiting For Lender” — the loan request has been successfully created!

Now just wait for a lender, and you can withdraw the request anytime as long as it remains unfunded.

Once it is funded, the requested ETH will be sent to your wallet. To make a repayment, simply click the loan and pay. When the loan is payed back, the collateral tokens will be transferred back to your wallet. Of course if you default, the collateral will be collected by the lender.