Salt cryptocurrency (SALT)
SALT is the native token of SALT Lending. The acronym SALT stands for Secured Automated Lending Technology. It is a platform based on Ethereum blockchain technology that allows people to take out loans backed by cryptocurrency. This means that customers can deposit some amount of cryptocurrency to receive a fiat loan. In this case, cryptocurrency plays the role of collateral. The platform provides business loans as well as personal loans. The main feature of this project is that users do not need to sell their cryptocurrencies to receive a loan, they are used as collateral. Crypto assets are held on the service until users repay the loan, and then they can return the cryptocurrency, the loan amount changes depending on the price of the collateral cryptocurrency. The minimum loan is $5,000 and can be used at the borrower's discretion. To become a member of the platform and be able to take out loans, users need to buy SALT tokens. The type of membership depends on the number of SALT tokens purchased:
- Base (1 SALT/year)
- Premier (10 SALT/year)
- Enterprise (100 SALT/year)
If the loan request is approved, borrowers send cryptocurrency to the collateral wallet and receive the loan in their bank account.
Overview of the SALT project
The platform was founded in 2016 by a group of Bitcoin enthusiasts, as the team describes itself on the official website. Their goal was to show cryptocurrency holders a broader view of how they can use their assets. In the beginning, the head of the team was Sean Owen. Has experience as an entrepreneur. However, he left the company in 2018. Another notable person on the SALT team is Eric Voorhees, the former founder and CEO of the ShapeShift crypto project. The SALT team is growing and now has more than 40 people.
SALT Advantages
SALT Lending was one of the first companies to provide crypto-loan services. Now they have a number of competitive advantages:
- Borrowing money using crypto assets. This is the most important feature of the platform.
- There is no need to sell owned crypto assets. Borrowers contribute their crypto assets only for the entire loan term.
- Easy to use. On the official website, users can find all the necessary instructions on how the platform works. Plus, there are all kinds of notifications to make the monitoring process more comfortable.
Disadvantages of SALT
Despite the fact that the idea of using cryptoassets to obtain a loan sounds very attractive , there are some points to consider before using the service:
- Cryptocurrency price volatility. It is common knowledge that cryptocurrency prices fluctuate. So the difference needs to be corrected. If the price of collateral changes sharply, the platform can stabilize it by exchanging it for stablecoins for the entire loan term.
- Minimum loan amount. As mentioned above, the platform has a minimum amount that customers can take out a loan that is at least $5,000.
- High repayment rate. The average repayment rate on the SALT platform is higher than in a traditional bank.
