The tokenlend platform will give the ability to invest in real estate secured loans from anywhere, any part of the world through different crypto and fiat currencies. This problem is designed to eliminate the uncertainties faced by small investors by providing secured loan based investment portfolio that offers competitive, consistent and predictable returns. By using a user-friendly web interface, the platform will offer a set of tools for the loan originators and potential investors. The core features of Tokenlend platform are listed below:-
1. Loan marketplace where loan originators will provide beneficial opportunities for users to invest and receive income
2. At Loan participants Note (LPN) market (i.e is secondary market) users can trade ongoing investments for instant liquidity
3. Payment gateways will allow users and loan originators to make withdraw and deposit of funds for their accounts.
The platform business logic will use all the advantages of blockchain technology with the help of Ethereum distributed ledger. It will present every object as a smart-contract as well as perform all the operations as a token transaction between Ethereum addresses that will help in achieving the outstanding integrity, stability and invulnerability of the system data.
TokenLend have a number of successful working products but to start a TokenLend project they need more capital to scale its impact. ICO is one of the best options that only offers a cost-effective mechanism for raising funds but also provide an effective way to closely interact with a community for developing the best products on the market. They have released tokenlend token for ICO abbreviated as TLN tokens. There are many others companies like Lendoit, Quasar, CryCash that launch their tokens to raise funds through ICO.
How TokenLend works?
The TokenLend work step by step in this manner:-
1. By using the Dashboard, loan originator will add a new loan to the system. Once the loan details are validated and verified successfully by the platform personnel, the smart contract is created and published on the platform.
2. For particular loans, users buy the Loan Participation Notes (LPN) through transferring the desired amount of TLN tokens to the loan address. After that, loan smart contact will generate the LPN contract with a principal value which is associated to the TLN amount transferred by the users and personal repayment schedule depend on the creation timestamp of loan terms and LPNs.
3. As a beneficiary of the interest payments, LPNs are associated with the ETH wallet address of the users. The total amount of received TLN tokens is transferred to the Loan Originator’s account in the form of loan principal.
4. The Loan originators will send interest payments and principal repayments to the platform as per the terms of loan smart contact schedule
5. Once the last transaction has done by the loan originator, LPN contacts close the repayment schedule and transfer the interest with a remaining token principal to the linked account.
6. After this step, a loan is considered closed and associated wallet address is removed. The LPN contract is considered fully accomplished.
The web dashboard will play a significant role in providing detailed statistics, projected income, repayment progress and other important information. The LPN market will enable the registered users to trade LPNs with each other. The users can submit and sell order for any particular LPNs according to their desired price in TLN. They are also allowed to comment and details about the particular LNS which is to be sold. All transactions will be done with the help of sending TLN from one address to another. The LPN will be considered as sold, if Ethereum network will confirm the TLN transaction and at the point when LPNs owner will be changed automatically.
At the time of public launch of the platform, the payment gateway will be released. This will allow the users to deposit their funds into the account in the form of TLN tokens as well as in any acceptable currency. The process of repayment and investment will also the same for non-ICO and ICO participants but there is only one key difference. The Non-ICO participants will not able get an opportunity to withdraw the loans in TLN but they can withdraw it in any other supported currencies.
What problem TokenLend is resolving?
If we talk about traditional banking products then they are very old and slow due to their red tape and paperwork. Today its world of cross-continental currency transfers but still, decentralized database and smart contract users are limited by their geographical location and residency. There are numbers of issues like different legislation complex taxation and currencies that creates a great hurdle in business activities and make them more complicated. Due to integration gap between financial services, people are a force to deal with various middleman institutions through their own fees, limits and verification policies.
To eliminate all such issues, TokenLend is building a robust and trusted ecosystem which offers outstanding fund lending services to all involved parties. By using TokenLend platform anyone can invest in real estate secured loans with the help of various crypto and fiat currencies all around the world. This platform will prove highly beneficial for small investors by helping them in building a secured loan based investment portfolio with the features of predictable, consistent and competitive returns.