Lendroid is a trustless, open,
Introduction
Lendroid is a trustless, open, peer to peer digital asset lending platform based on the Ethereum
blockchain.
The Lendroid marketplace enables borrowers to avail instant low-cost digital asset loans and
lenders to earn interest on the digital assets they lend. Additionally, Lendroid support token
(LST) holders act as guarantors of these loans by locking up their LSTs as secondary collateral.
The Lendroid platform is extensible by design and allows the creation of loan markets on any
ERC20 token.
Concept
Lendroid brings together lenders, borrowers of digital assets, and guarantors who wish to
guarantee these digital asset loans. A 'borrower' can collateralize a digital asset to borrow
another digital asset from lenders for a short period. At the end of the loan period, the borrower
has the option to extend the loan by adjusting the collateral locked or repay the loan along with
the accrued interest - or he / she stands to lose their collateral. Guarantors can choose to
guarantee loans issued by one or more markets they believe will remain solvent by locking up
LSTs which act as secondary collateral for a loan.
The guarantors and lenders are expected to understand the financial risks they expose
them to participate in the loan markets. The Lendroid platform does not guarantee
profits for lenders or guarantors, and expects them to perform their due diligence before
deciding to involve in any market.
Terminology
● Primary collateral - Digital asset locked up by the borrower within a loan contract
● Secondary collateral - Digital asset locked up by the guarantor within a loan contract.
The only digital assets that can act as secondary collateral are LSTs.
● Loan expiry - The date and time before which the loan is expected to close.
● Secondary collateral pool - The pool of secondary collateral funds is held under each
market, committed by one or more guarantors.
● Loan funds - A digital asset that is lent to the borrower.
● Loan funds pool - The pool of loan funds is held by each market, committed by one or
more lenders.
Architecture
The Lendroid platform consists of two principal components
● The market contract
Market creator establishes a new market contract
At creation, the market contract contains collateral types and collateral ratios that can be
used to arrive at the specific loan parameters:
1. The digital asset that is lent out (e.g., ETH, DAI)
2. The primary collateral type (e.g., DGG, REP)
3. The primary collateral ratio requirement (e.g., '1.3' i.e., for every USD 1 of loans funded,
USD 1.3's worth of primary collateral needs to be locked in at the start of the loan
period).
4. The secondary collateral ratio requirement (e.g., '0.3' i.e., for every USD 1 of loans
funded, USD 0.3's worth of secondary collateral - in the form of Lendroid support tokens
- need to be locked in at the start of the loan period).
5. Maximum loan period-maximum duration before which the borrower is expected to
repay the loan).
Non Custodian
Smart contract means no 3rd party custodian. With Lendroid there is no risk of a custodian being hacked when lending / margin trading.
Working at the Exchange
Lendroid has a common protocol and a pool of liquidity together to trade margins in various centralized / centralized exchanges.
Non Rent-Seeking
The protocols are non-partisan and are not preferred by one type of participant to the other. Fees are paid by actors who use the protocol for those who assist the protocol.
Market dynamics
In the absence of a unifying platform, the tediousness that accompanies the formulating loan terms,
seeking interested lenders, negotiating interest rates convincing them to get involved is all too
tasking for the borrower. The lender, with various loan requests, is bound to feel
overwhelmed regarding choosing borrowers and entrusting in them. All in all, a loan establishing
process becomes all too cumbersome and prohibitive.
Team
Vignesh Sundaresan
LEAD PROJECT
Paul Martens
BRAND & UX
Franca Ciambella
LEGAL ADVISOR
Supriya Vasu
COMS & OPS
Patrick McLain
DEVOPS
Vii Sundaram
TECH LEAD
Galen Danziger
DEVOPS
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