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SmartLending
Interest-free loans made simple.
Through SmartLending, any SmartDeFi token can be used as collateral to take out loans against its baseline value - without having to sell or burn the SmartDeFi token.
Upon taking the loan, the borrower instantly receives the baseline value for the tokens that were collateralized. The borrower then has 30 days to repay the loan without interest.
If, however, this lending period is too short and the loan cannot be repaid in time, the user may choose to extend the lending period by another 30 days by burning 0.1% of their collateral.
Without repayment or extension, the loan defaults and the collateral is burnt.
- Because the collateralized tokens are held inside the smart contract and considered part of the circulating supply, they continue to accrue the asset-backing as they would in the investors wallet. This enables SmartLending to be interest-free.
- There are no profits in SmartLend. The APY is burned and the repaid baseline value is returned to the backing-pool of the respective SmartDeFi token.
SmartLending means that you can now have access to your SmartDeFi token's baseline value without having to sell it. This is perfect for life emergencies or helping take advantage of buying into the launch of a new token, without having to sell your assets.
This means that you have freedom and can also treat your baseline value as a banked asset.
SmartLend requires no oracles as the price comes directly from the baseline value pulled from the smart-contract. Furthermore, as SmartLend requires no third party there is no room for external manipulation or exploits of the code.
SmartLend is the first lending protocol where the funds and data for ratio calculations are hosted inside the same place, making it the most secure lending protocol ever created.
If a SD Token has a reflection tax, loaning it WILL cause that reflection tax to be deducted.
The system takes the users token and holds it in the Smart Contract as collateral while lending out the baseline value in BNB/ETH for it as a loan.
No, they do not.
Once a token is used as collateral for a SmartLend loan, the SD tokens do not receive reflections while being held inside of the Smart Contract.
Once a user repays their loan in full, the token is given back to the user in their wallet (outside of the Smart Contract) and it will begin again to receive reflections (if the token is reflective (RFI).
This is where the amount of BNB/ETH to be received in exchange for the collateralized token is shown.
Loans are immediately distributed in the form of the asset-backing token (e.g., BNB, ETH, USDC, etc.)
Note: Only one loan can be taken at a time on a single token and the loan must be paid back in full to take another.
After a loan is taken, two new menus appear under the SmartLend menu called "Extend" and "Repay".
Click on the "Extend" menu to be presented with information of an active loan, the options to extend or repay the loan will also be shown.
The exact Time and Date of the loan expiration will be presented
The amount of tokens provided as collateral will be displayed
The 0.1% fee for a 30 day extension will be shown.
At this point, to agree and confirm the 30 day extension, simply click the "extend loan" button and confirm the transaction in the window that will appear in the wallet being used.
The fee will be deducted from the tokens used as collateral, in the given example the user would be left with 8991 tokens from the 9000 used as collateral.
In the "Repay" menu loan information such as the expiration Date, Time and repayment amount (the amount borrowed interest free against collateralized tokens in BNB or ETH).
"Repay Amount" will always be the same as the amount that received when the loan was taken.
Once ready to repay the loan, place the amount necessary and simply click the "REPAY LOAN" button.
Confirm the wallet dialog for the transaction to process.
Once repaid, users are immediately eligible to take out another loan for their base-line value.
Last modified 4mo ago