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What is SALT Lending?
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What is SALT Lending?

News Desk
News Desk
January 31st, 2023
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SALT lending is a platform that provides Blockchain-Backed Loans.

SALT (Secured Automated Lending Platform) enables you to put up your crypto as collateral in exchange for a cash loan. This is ideal if you need to pay-off an unexpected expense or want to make a big purchase without having to sell-off your blockchain assets.

SALT lending homepage

RANK

68

MARKET CAP

$416.83 M USD

VOLUME (24H)

$15.11 M USD

Currently (but not for long), you can also pay-down the capital of your loans with SALT tokens.

This creates an interesting arbitrage opportunity. If you have the bankroll, you could technically get an Enterprise membership for $1200 and take out a $1M loan backed by $1.25M of Bitcoin. You could then turn around and buy $1M worth of SALT tokens from the market (~83,333 SALT).

Because the SALT tokens are worth $27.50 on the platform you would only need to spend ~45,455 SALT tokens to pay back your loan. This leaves you with a little under 40,000 SALT tokens plus the original Bitcoin you put up as collateral – about a 40% return.

Unfortunately, The ability to pay-down your loan’s capital using SALT tokens appears to be a temporary measure to reward early investors and will likely be removed as the platform opens up to more borrowers.

Trading

SALT held their ICO in Q3 2017 in which you could purchase a membership token for $3.00 – $7.00 depending on the time that you bought it. There are a total of 120M SALT tokens, and 54.5M are currently circulating in the market.

The SALT price briefly experienced the common “post-ICO” dip before spiking back up to a little over $7 in October 2017. Shortly after, the price fell to the $2-$4 (0.0003-0.0005 BTC) range and stayed there until December 2017.

Starting in December 2017, the price steadily rose and recently jumped to an all-time high of over $17with the announcement that lending on the platform had finally begun.

With the current gap between the market price and the price of SALT tokens on the lending platform, the price should continue to rise until this gap is closed. However, you should remember that the crypto market is irrational, and anything could happen.

Where to buy SALT

The most popular exchanges to purchase SALT are BinanceBittrex, and Huobi. To trade for SALT on one of these exchanges you need to first have Bitcoin or Ethereum.

If you don’t have either, you can purchase them with traditional currency on an exchange like Geminiand then transfer them over.

For a full list of exchanges where you can buy SALT, check out CoinMarketCap.

Where to store SALT

Because SALT is an ERC20 token, you have a few different options on where to store it. A popular online option is MyEtherWallet.

The SALT website recommends that you use the Jaxx wallet and even provides instructions here. Jaxx is available on Android, iOS, Mac, Windows, Linux, and as a Chrome extension.

The most secure way to store your tokens is by using a hardware wallet like Trezor or the Ledger Nano S. Using hardware wallets keeps your funds offline and out of the reach of hackers and ill-intended software.

Conclusion

The SALT lending platform is a great option if you want/need to make some real-world expenses and don’t want to lose the potential gains from your crypto holdings. Beyond that, the project works to solve a major problem of blockchain assets – illiquidity. By opening up an entirely new form of loans, the project brings more liquidity to the cryptocurrency market.

The team has a solid foundation of blockchain experience and is advised by a leader in the industry. With a working platform in the market already, SALT is ahead of many other blockchain projects.

Soon, the SALT lending platform will be open to all tiers of borrowers looking to take advantage of this groundbreaking service further bringing together the worlds of crypto and traditional finance.

Additional SALT Lending resources

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