About

Salt Lending develops a blockchain protocol for crypto-backed loans, allowing borrowers to leverage their cryptocurrency assets for liquidity without selling them. The platform offers loan products secured by cryptocurrencies, aiming to cater to borrowers seeking to maintain their crypto positions while accessing cash for other needs. Salt Lending's services are designed to combine the benefits of digital asset ownership with the utility of traditional lending.

History

The platform is built on blockchain and smart contract technology which enables lenders and buyers to negotiate terms, originate a loan, and automate payments without relying on third parties. Compared to credit-based lending (which measures trust based on income), collateralized loans are issued in exchange for cryptoassets stored within a smart contract. Lenders publish the loan terms that they are willing to offer borrowers through Salt’s platform. The borrower chooses which terms they’d like and sends their collateral assets to a multi-sig wallet. Lender then posts the cash funds and sends them to the borrower’s account. Borrower makes monthly payments through the duration of the loan, and upon re-payment the funds are returned. If the portfolio value of a borrower drops below a specified threshold, a call notice is sent to the borrower notifying them additional funds are needed. If the borrower fails to re-collateralize, a portion of their portfolio is automatically liquidated to re-balance the over-collateralized loan.