- EthLEND has adopted a free market system for the provision of loans. Negotiations determine the duration of the loan and the interest rate of the loan. Since this is based on the Ethereum blockchain technology, any ERC20 tokens are permitted. If you do not stick to the terms and conditions of the blockchain-based contract, you will forfeit all of your collateral. The price of these LEND tokens is subject to price fluctuations and volatility.
Cryptocurrency lenders intend to offer the same services as full-fledged banking institutions, but regulatory constraints make it difficult to attain that status. This is not to say such regulation will not come into place; it is simply a matter of time. Margin calls and additional collateral are concerns for cryptocurrency lenders seeing their loan values depreciating or appreciating and how that relates to the principle of the loan. Soon, we will see regulation permitting global money transfers in a safe, secure, and structured financial ecosystem.
