SALT is a lending platform that allows users to secure cash loans by collateralizing blockchain assets. On the SALT platform, users can obtain loans by using their digital currencies as collateral. By focusing on the value of borrowers blockchain assets rather than their credit scores, the application process is simplified, and borrowers are automatically matched with an extensive network of lending institutions. Users can access liquidity without needing to sell their digital currency assets.
SALTs core mission is to provide a blockchain-based platform for collateralized lending, where users can pledge their blockchain assets, such as Bitcoin and Ethereum, to receive fiat loans.
On the SALT system, users must acquire SALT tokens to participate in the platform and secure loans. The more SALT tokens a user spends annually, the higher the amount they can borrow. With SALT, users can unlock the liquidity of their cryptocurrency holdings without having to sell them, unlike traditional asset classes like stocks, bonds, real estate, and commodities. SALT loans are entirely collateral-based, meaning the borrowers credit history is irrelevant. Every users collateral holds the same value on the platform, regardless of individual credit scores.
Project Highlights
SALT addresses the need for liquidity among users who wish to hold onto their cryptocurrencies long-term, which is a pressing need for many users. Additionally, SALT supports:
- Entities holding substantial reserves of cryptocurrencies;
- Businesses requiring fiat liquidity, such as exchanges, gaming platforms, ICO projects, miners, etc.
To use the SALT platform, users must first purchase SALT tokens to become members. There are three membership tiers:
- Standard Membership: Up to $10,000 per loan;
- Premier Membership: Up to $100,000 per loan;
- Corporate Level: Up to $1 million per loan with customizable loan terms.
Use Cases
SALT is the first blockchain-based lending ecosystem, with a focus on its secure and automated lending technology. It creates a new market for cost-effective and fair loans while protecting both lenders and borrowers investments. The specific steps for obtaining a loan on SALT include:
- Loan Creation: Borrowers set up a member account and then forward their collateral to the SALT Oracle wallet. This is a multi-signature block wallet that acts as a collateral repository and manages the loan terms automatically.
- Once approved, the loan funds are transferred to the borrowers bank account.
- Loan Repayment: Borrowers make timely payments to the lender.
- Loan Completion: After the loan is repaid, the collateral is returned to the borrower.
SALT does not perform credit checks on borrowers but conducts comprehensive anti-money laundering (AML) and know-your-customer (KYC) verification checks. Loans earned through the platform are denominated and repaid in traditional currency.
