Are you salty about the current bear market?
Feel like you could use some cash...but don’t want to sell your crypto?
Well have no fear, a shitcoin is here!
Today’s review is SALT.
Let’s dig in…
SALT (ticker: SALT)
Wtf is this shit?
SALT is a member-based lending platform. SALT, which stands for a “Secured Automated Lending Technology,” is a lending platform that allows you to put up crypto as collateral to get a loan in cash. Using this platform, you can take loans for personal expenses without actually selling your crypto.
They trademarked the term and concept “Blockchain-Backed Loan” which is exactly what we mentioned, putting up a crypto asset as collateral for a loan. SALT doesn’t require loans to be for business; they can be used for personal expenses, or anything really. Well, hopefully not to pay back a crack dealer...but hey, as long as you don’t get caught...ANYWAYS..let’s move on..
Many loan services will have percentage fees of the total loan (APR) and monthly maintenance costs...SALT takes a slightly different approach, promoting a membership-based solution.
Both lenders and borrowers must pay for a SALT Lending membership. There are three tiers: membership, premier, and enterprise. Each level has a different cost and allows for certain terms and amounts to be defined in your loan agreement.
SALT does NOT perform credit checks and offers low barrier of entry for people to get loans as compared to banks. They do follow the usual KYC/AML processes for borrowers and lenders, but no credit check...basically if you have the collateral, then you should be okay (it seems..).
They have a SALT Oracle, which basically creates smart contracts that trigger and control the events of a loan (they have multi-sig smart contracts) to ensure agreement and trust between parties.
Each loan has a loan-to-value ratio basically assessing the risk with each loan.
Let’s create an example of a loan-to-value ratio and see how it affects the borrower.
One day you borrow $100,000, securing with $125,000 worth of Dogecoin as collateral (yes, you have that much DOGE). This equates to an 80% loan-to-value ratio ($100,000/$125,000 = 0.80) OR we can say that you are 25% over-collateralized. This is a good thing, hopefully, it means you can make your monthly payments (with whatever interest they charge you). As you make payments, your loan-to-value ratio will decrease, due to less outstanding debt.
BUT...if the market dumps or shit does down and the value of your collateral decreases, then you will need to quickly put up more collateral or quickly pay off more of your loan quicker.
The Oracle can also take in all of this data, tracking the collateralized smart contracts and alert borrowers and lenders on the status of the loan.
ALSO - it is Ethereum based...SALT is an ERC-20 token.
TL;DR - a low barrier of entry lending platform that accepts crypto as collateral.
Who tf is behind this shit?
Shawn Owen is the CEO with lots of experience in business, primarily in the restaurant sector it seems...acting as a general manager or COO of various enterprises. Not much tech or crypto background, but certainly financial..perhaps he has taken out a bunch of loans... Nonetheless, he has built a team of over 20 members...but he has the spotlight generally.
All in all, mid-tier shitcoin, cool concept, actually not much competition...let’s see how they do.
Hope you learned some shit and make sure to follow us on Twitter!
- Mike and Aaron