A cryptocurrency lending company from San Francisco which is backed by Coinbase is finally live on the ETH network. Dharma is a decentralized network. The company is ready to do the business as per the post revealed on Monday. Apart from Coinbase, Polychain is also backing it along with others.
The Dharma network aims to connect lenders and borrowers with its peer-to-peer platform structure by using the technology of smart contracts. The platform is beneficial to both the lenders and the borrowers. Those users of the platform who are lending money to the borrowing users would get a fixed rate of return. And this is the USP of this platform which helps it to stand out from other crypto lending companies in the sector. However, lenders would be eligible to earn a fixed rate of interest only when the lending fund is lent to a borrower.
So far, Dharma platform allows the transactions only in two coins, Ethereum and DAI. Lenders and borrowers can lend and borrow in these two forms of crypto money only.
The COO and co-founder of this company Mr. Forster said, “we see the broader shift to blockchain-based financial services as the beginning of a much more efficient, programmable, and equitable financial system.”
The CEO of the company also had something to say on this occasion. He said that the platform is the only place where the average cryptocurrency holder can earn interest on the idle cryptocurrency fund. He also added, “There are a handful ways to earn interest on your crypto in a non-custodial manner, pretty much all of those require a high degree of technical knowledge.” He further said that many crypto-based companies are developer oriented, but Dharma is user-oriented.
Dharma platform is a bit like LendingClub in terms of the concept. The platform is running a beta version for 2500 users. So far the platform has facilitated the transaction of $1.16 million through 1575 loans. Once a loan is sanctioned, the smart contract based decentralized platform distributes the lent money to the borrower in a mere 30 seconds.
Cryptocurrency lending sector is booming since its introduction as the concept itself is very attractive for crypto holders. Crypto lending companies like SALT and BlockFi have gained record profits in a recent month despite the bearish market trend.