CRYPTO-BACKED peer-to-peer lending platform ETHLend has reached more than £2m of loans as it announces new incentives to encourage users to transact with its LEND token.
The platform, which lets investors back business and personal loans worldwide using the Ethereum blockchain, launched with an initial coin offering (ICO) last November, creating LEND tokens that can be used on the website to pay transaction fees.
The platform allows borrowers to request loan amounts and post other digital currencies as collateral as well as paying interest on the loans.
Borrowers can post any digital currency as collateral and loans can be made in Bitcoin or Ethereum or LEND. But ETHLend now wants more people to use the LEND token as the means of exchange so it has said anyone providing funds in LEND won’t have to pay any transaction fees.
There is also a 50 per cent discount when the LEND coin is posted by borrowers as collateral.
Read more: Blockchain P2P lending partnership formed
Since launching on 15 December 2017, there have been more than 600 loan transactions on the decentralized lending platform with more than 3,000ETH (£2.2m) worth of lending volume.
ETHLend was founded by Finland-based Stani Kulechov and notes each transaction using secure smart contracts held off of the traditional blockchain.
The platform has teamed up with technology firm Enigma, which has built a second-layer ‘off-chain’ network that still records the transactions on the blockchain but encrypts them so the data can’t be accessed.
Read more: Peer-to-peer Bitcoin lending fund launches