ETHLend
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Basics
How Decentralized is it?
- Was classified Degree 2 DeFi on the HackerNoon rankings of 25-4-2019. "These DeFi products are non-custodial and have one additional decentralized component which could include price feeds, initiation of margin calls, margin liquidity, interest rate determination, or platform development, while the rest are still centralized."
- A BIG side note, is that the blog was written by Kyle J Kistner who is Chief Vision Officer at bZx. He gave her own project the highest ranking. What a surprise.
- From the comprehensive blog post:
"Custody: The ETHLend contracts are closed source and non-custodial from the point of loan origination.
Initiating Margin Calls: Margin calls are initiated by the lender. They are prevented from prematurely liquidating a position through the price feed. The fact that only one party is in charge of initiating a margin call makes this aspect of the protocol centralized.
Margin Call Liquidity: Lenders are in charge of liquidating positions, and they receive an 8% discount on collateral for doing so. ETHLend collects 2% as a fee. The sourcing of margin call liquidity is centralized to the lender.
Interest Rates: Interest rates are agreed upon freely by borrowers and lenders. This aspect of the protocol is decentralized.
Development: The ETHLend contracts are closed source and partially mutable. The protocol is centrally developed by the team. The core functions are not mutable, but auxiliary functionality such as single loan repayments can be built on top."
Team, investors, etc.
- Part of the portfolio of SVK Crypto
