CRYPTOCURRENCY-BACKED peer-to-peer lending platform ETHLend has set up a reward scheme for its most active lenders and borrowers using its own digital coin.
Lenders who have funded loans on the platform and borrowers who have managed to fund requests and repaid them will be rewarded with LEND tokens.
Rewards will be “airdropped” once every quarter starting from this month, the platform said in a note to investors late on Thursday.
“ETHLend is allocating 20 per cent of collected fees to purchase LEND back from the market to reward active lenders and responsible borrowers as a compensation for good behaviour on our platform and as an incentive to increase user adoption and lending volumes,” the firm added.
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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 will not have to pay any transaction fees.
There is also a 50 per cent discount when the LEND coin is posted by borrowers as collateral.