A new technology involving cryptocurrencies has been introduced. There is a new startup from Colorado, USA, called SALT (SALT), which uses blockchain in lending loans collateralized by cryptocurrencies.

The startup is known as SALT an acronym for Secured Automated Lending Technology.

Frankly speaking, this is just one of a kind. It stands out as the only blockchain based financial enterprise for lending loans. The founders must be geniuses. How does this work! I think it is a breakthrough in the world of cryptocurrencies.

Most businesses thrive on loans. At times the financial situation becomes too tough that it requires the entrepreneur to source for money from anywhere to keep his/her business running. But does this mean that crypto traders should exchange their cryptocurrency savings for fiats so as to leverage their businesses?

Some years ago this was the only option. But now with SALT Lending, everything is taken care off.

But how does SALT lend loans?

The SALT platform is connected to the ERC20 smart contracts of the Ethereum so that users can be able to access the “capital on demand” market though SALT’s lender ecosystem.

The most amazing thing about this platform is that the process of accessing the loan is very simplified. All in the hope of supporting investors.

Let us look at a practical example of what happens:

Let’s take an Ethereum investor who really needs money to cater for other needs like covering medical bills. If the investor sells all his Ethereum fortune so as to get the required fiat cash for the medical cover, and the price of the Ethereum after an hour rises sharply, the investor will live to regret why he/she sold the Ethereum.

Here is where SALT coin come in. It gives a loan with the cryptocurrency, which in our case is the Ethereum, acting as the collateral. In this case, the investor will be required to deposit some of his cryptocurrency fortune into SALT’s wallet for him/her to receive the loan.

And after the completion of payment of the loan, the cryptocurrency is refunded back to the investor.

SALT (SALT) Loan process step by step

Membership: the borrower/investor will be required to create a membership account. Here, the borrower will be required to part with some of his/her cryptocurrencies which he/she should deposit in SALT Oracle Wallet.

The SALT Oracle Wallet acts as the repository for the collateral and it also manages the lending terms.

Getting the loan: Immediately you complete creating the membership account, your loan is deposited into your bank account.

Repayment of the loan: SALT expects the borrower to make timely repayments. The repayments are spaced out over a span of some time.

Refund of collateral: once the borrower finishes repaying the loan, they are refunded their cryptocurrency collateral that was deposited in the Oracle Wallet.

Advantages of acquiring loans via SALT

SALT does not do background credit checks on the borrower. It only does a thorough Know your Customer (KYC) and Anti-money Laundering (AML) verifications.

Borrowers get fiat money directly into their bank accounts.

If the repayments are made promptly, the borrower doesn’t become a victim of prepayment penalties.

Disadvantage

The only disadvantage is that SALT (SALT) is currently only operating in the US. Hopefully, in the near future, they will move out to other countries.