Lendingblock Review
Lendingblock, a cryptocurrency lending platform, has officially closed its services at the end of February 2021. The company cited lack of capital as the primary reason for its closure. Lendingblock’s closure marks a significant moment in the cryptocurrency lending industry, as it was one of the first such platforms to enter the market.
Lendingblock may be able to offer returns of up to 13.8% on its crypto loans, with interest rates that are just as competitive. Lendingblock’s native LND coins must be staked to qualify for these interest rates.
What is Lendingblock?
Lendingblock (LND) is the platform’s governance and utility token. Due to tiered rate incentives or discounts, LND platform holders can lower borrowing costs while increasing profits on deposits. Using LND as collateral for stablecoin loans is something platform users can look forward to in the future.
Holders of LND will be able to vote on future platform advancements, such as feature additions and asset priority, using LND in platform governance. According to their lending and borrowing activities and the amount of LND they own, platform holders of LND will receive monthly airdrops of LND.
Services
Whatever the user type, Lendingblock categorizes them as either lending to or borrowing from other crypto trading platform users. Suppose you’re a lender on this platform. In that case, you won’t have to give up any advantages of owning your assets for a lengthy period to take advantage of additional interest income.
As previously mentioned, borrowers who use this platform can take advantage of asset lending in the cryptocurrency market while also benefiting from a platform that provides clear pricing and fee structures based on market supply and demand.
There will be KYC and AML screening for both borrowers and lenders on the Lendingblock platform, and both parties will be able to fill out profiles to describe the nature of the lending or borrowing arrangement they are looking for.
Users can browse lending offers and borrowing requests in an order book, including a matching function.
When a lender and borrower are matched, a smart contract is produced to formalize the loan terms. An important part of this procedure is the ability of lenders to specify the forms of collateral they are ready to accept at the initial specification profiling step. The smart contract enters a servicing/operational stage when borrowers attach collateral and lenders link loan principal.
Crypto Borrow
A short-term loan backed by BTC or ETH issued in USDT is available through Lendingblock Borrow.
● Where can I find out more about Lendingblock Borrow?
Depending on how much BTC or ETH you’re willing to put up as collateral, Lendingblock offers loans ranging from $50 to $100,000. Any upfront expenses or origination fees aren’t incurred by using this service. The length of the loan determines your APR. In addition to the collateral you use to secure the loan, they offer rate savings based on the number of LND tokens you’re willing to stake.
You can only borrow half the value of your Bitcoin or Ethereum in your Lendingblock wallet with this lender’s loan-to-value (LTV) requirement of 50%. If you want to borrow $20,000, you’ll have to pay $40,000 in advance as security.
You must also keep a close eye on the value of the crypto you pledge as security to make sure it doesn’t lose any of its appeals. Your loan’s LTV will be lowered if the value of your cryptocurrency decreases.
● What happens if the value of my crypto decreases?
Suppose your collateral depreciates during the period of the loan. In that case, Lendingblock will notify you to provide more collateral and restore your account to good standing if your LTV rises above 65%.
Otherwise, they will liquidate your collateral to restore the account’s balance if your LTV rises above an established threshold.
According to Lendingblock’s terms and conditions on the website, the liquidation level isn’t made public to the general public. Typically, crypto lenders liquidate at 80% to 90% LTV, but before you accept to borrow, you must confirm Lendingblock’s threshold.
Excess collateral is immediately returned to you if your collateral improves in value, lowering your LTV below 40%.
Earn Interests
It is possible to deposit BTC, ETH, and USDT into Lendingblock Earn for free. Only by staking Lendingblock’s native token, LND, you can earn up to 13.8% on USDT. Staking requirements may put some people off, but this is a good account for novices and experts alike.
● What is Lendingblock Earn, and how does it work?
Unlike a regular savings account, Lendingblock Earn functions more like a Certificate of Deposit. Instead of collecting interest for the rest of your life, you get a one-, three-, or six-month fixed return. In addition, the amount of Lendingblock tokens (LND) in your account also affects your yield. To get the highest returns, you must own 2.1 million LND tokens, which is approximately $4,900 as of March 2024.
Lendingblock, like many other crypto-savings accounts, exclusively pays interest in the form of cryptocurrencies. Once the time has expired, you cannot withdraw money from your account. Interest is calculated daily and deposited into your account on the 1st of each month, just like traditional savings accounts. Other crypto savings accounts pay interest on a minute basis.
How Lendingblock Earn manages to pay such high-interest rates is a mystery. There is no information on Lendingblock’s website about how it generates returns. Lendingblock, like all crypto savings accounts, does not have FDIC insurance protection.
● How to get the best interest rates possible
Lendingblock’s LND Boost program requires you to lock up some of your digital assets in the form of LND tokens to get the greatest rates. The more LND you invest, the more you’ll earn.
Basic, Bronze, Silver, and Gold are the four stages of the LND Boost program. The amount of LND in your account determines your rank.
In the future, Lendingblock wants to offer consumers with Bronze, Silver, and Gold status in the LND Boost program access to governance voting and other benefits. The only benefit for current Lendingblock Earn customers is a higher interest rate.
You must deposit USDT into your earn account and possess at least 2.1 million LND tokens to earn Lendingblock’s top rate of 13.8%. BTC and ETH’s maximum rates of return are lower.
Exchange
Lendingblock provides a simple crypto exchange that currently only supports LND and USDT. There are candlestick charts for the last hour, day, week, and month, and you can purchase or sell limits or market orders between the two assets. Other than that, there aren’t any extras.
Lendingblock coin
Within the Lendingblock system, LND tokens are utilized as cash. Lendingblock will pay all loan interest in LND tokens earned on the network, a means for users to earn cryptocurrency.
Customers can buy tokens for interest payments at the beginning of the loan arrangement to lock in the cost of interest payments.
Things like how many loans are being issued on the Lendingblock platform and how long borrowers keep the LND tokens they use to repay loans affect the Lendingblock coin price.
LND tokens should become more valuable as the platform’s activities increase and its users hang on to their tokens for longer.
Wallet
The exchange doesn’t have a personal wallet. But you can store the coin on other cryptocurrency wallets.
Cryptocurrencies
If you have anything other than BTC, ETH, or USDT, you will be unable to earn interest in it.
Mobile & App
Lendingblock seeks to provide institutions and people with sophisticated capabilities through web and mobile technologies and APIs.
Contact & Support
Only a form on the company’s website or the Telegram messaging app can be used to contact customer care. If something goes wrong or you have a question, your only recourse is to send a message or fill out a form and wait for a response.
You can check out our MyConstant review, BlockFi review, Coinloan review, and Youhodler review here.
Conclusion
Lendingblock, for example, is a platform that provides analogs to financial mechanisms found in the more robust traditional securities market, and it contributes to the overall stability or, in the case of Lendingblock, liquidity, of the crypto market as a whole as a result of this influx of institutional investors.
Token-based exchange-traded funds (ETFs) could be just around the corner, thanks to Lendingblock’s high likelihood of being a successful blockchain version of securities lending
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 | Rudolph Taylor is Editor-in-Chief at Coinlive.io which is located at Wymondham in Norfolk, United Kingdom. His main job is writing about cryptography to keep his readers updated on current trends and industry news in detail. Rudolph has been able to achieve this in the past few years by providing well-structured write-ups. |
Frequently Asked Questions
You must give up some of your hard-earned money to succeed in a cryptocurrency enterprise. When a project or team asks for your money, you expect them to be open and professional. Lendingblock has discovered a solution to an issue; however, the token they produce has a weak backup, according to research and reviews. By looking at their project's community and roadmap, it's clear that their goals and objectives have been realized thus far.
You'll need to use another cryptocurrency to buy Lendingblock on a decentralized exchange. For Lendingblock, you'll need to buy Ethereum (ETH) before you can buy Lendingblock with Ethereum. To do so, you'll need a self-custody wallet. With Coinbase Wallet, you may accomplish this for US residents. Download the Coinbase Wallet: To buy Lendingblock, you'll need a wallet you control, such as Coinbase Wallet. Coinbase Wallet is accessible as a browser extension and an app for smartphones.
You can't withdraw directly from Lendingblock. You'll have to go on your preferred third-party crypto platform where you have it stored then withdraw from there.