In our last posts, we spoke about How Crypto Backed loans are different from peer-to-peer loans, what are the different types of crypto loans, advantages of crypto-backed loans, Risks associated with crypto lending, crypto lending platforms in US, Crypto Lending Platform in UK and Crypto Lending Platform in Europe. Continuing our discussion further on Everything you need to know about Crypto-backed loans, today we would talk about different crypto lending platforms in India
While India is still figuring out should they treat cryptos as commodities or ban crypto trading, a startup in India Nuo Bank with their product getLend is offering lending services. Let’s take a closer look –
Crypto Lending Platforms in India
Nuo a start-up from India aims to offer a decentralized and transparent debt platform. It is a Blockchain based Bank that allows you to buy, hold, lend, loan cryptos on the Ethereum network. They have launched an Android app, that offers the flexibility of buying cryptos and storing it as well. Nuo Lend another platform helps in connecting borrowers and lenders. Nuo lend comes in three flavors-
Peer to Peer Loans
It is a lender-borrower network where a borrower could submit a loan request and deposit his ERC20 tokens onto the safe wallet with NuoBank.Using the decentralized lending platform the lender could earn an interest rate by funding a loan and the borrower in need of money could use his crypto tokens to get extra cash.
A financial marketplace to buy, sell and discover non-fungible tokenized assets traded as ERC71 bonds through auctions.
A peer to peer network of margin traders with shared liquidity and up to 10x leverage. Before digging deep into the business model, let’s figure out what is crypto margin trading?
What is Crypto Margin Funding?
In simple terms, its Crypto Margin trading is where a lender offers a loan to a trader to invest. While the lender earns interest on the debt offered, the trader could earn a profit[with an increased investment]. Let’s take an example – if you are staking 5$ with a 5:1 leverage would mean you are placing a bet of 25$ in the open market. Now, as a trader, you would need to pay the borrowed money and also the fees or the interest attached to it. Hence, traders expectations and speculation is that the gain would be sufficient to cover the interest and make him earn a profit.
How Nuolend Margin Funding Works?
The NuoLend platform would connect Margin traders and lenders so as to facilitate margin trading. Each Margin trader needs to put his ERC20 tokens as collateral to get funded, and if the value is dipped, the collateral would be liquidated to pay the loan amount.
Nuo is a decentralised and transparent crypto banking platform. It acts as a blockchain powered financial control centre to store, spend, borrow and grow your crypto-currencies. Install the android app or try out our crypto backed loans platform.
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