ETHLend Creates a Loan Standard “ERC-1068” With ConsenSys
The new ERC loan standard aims to have a flexible and robust backbone for loan applications, which are built on top of the Ethereum network. The standard is quite basic to cover different lending instruments such as peer-to-peer lending, crowdfunding, uncollateralised lending and secured lending.
This different from the common standards used at ETHLend. When a common standard is used, such as ERC-20 token standard, developers are able to create seamless ecosystem around the standard.
For ERC-1068 it means that there could be in the future different applications such as secondary markets for loans, credit rating systems and decentralized hedge funds.
- The standard allows the implementation of a standard API for loans within smart contracts.
- It provides basic functionalities to fund loan, accept the raised amount, payback the due, and recover the investment by lenders.
- The loan contract can have different optional features, like interest, loan as token, collateral, review borrower behaviour and risk analysis.
ETHLend will be introducing the ERC-1068 on Enterpise Ethereum Alliance (EEA). ETHLend will use the new loan standard working with the R&D departments of financial institutions that are building lending applications on Ethereum.
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