To reward active lenders and responsible borrowers as a compensation for good behavior on its platform, ETHLend is allocating 20% of collected fees to purchase LEND back from the market. This is also seen as an incentive to increase user adoption and lending volumes.
There is total of 152 Borrowers and 214 Lenders who are eligible and they will receive LEND tokens on their MetaMask address starting from 1st of May and onwards.
ETHLend collected 37.18 ETH between December 2017 and March 2018 with the proof-of-concept fee structure, 20 percent of these collected fees (7.436 ETH) was used to purchase LEND from the exchanges, a total of 63 740 tokens were bought.
50 percent of the LEND purchased from the market will be distributed to Borrowers and 50 percent to the Lenders. Borrowers will receive 89.27 LEND per eligible Loan and Lenders 29.75 LEND per eligible Loan.
ETHLend: New Fee Structure
ETHLend which is about to bring 0.3 Alpha release (Kogia) to mainnet, is also going to have a makeover in its whole fee structure, LEND token will have greater prominence activating Zero-fee lending, which will heavily affect the upcoming Rounds of these rewards.
Biggest change comes to using LEND token as a lending currency. ETHLend will collect no fees from either party of the loan when LEND is used as a currency. However, when LEND is not used as the lending currency, we would apply the following fee structure as presented earlier:
Fees when using LEND as Collateral:
- Borrower: 0,25% of the Collateral when loan repaid or defaulted upon will go to ETHLend.
- Lender: 5% of the total Interest will go to ETHLend.
- In case Borrower misses an installment and pays it late, the penalty payment (5% of the installment) will go fully to the Lender.
Fees when LEND isn’t used either as MoE or Collateral:
- Borrower: 0,5% of the Collateral when loan repaid or defaulted upon will go to ETHLend.
- Lender: 10% of the total Interest will go to ETHLend.
- In case Borrower misses an installment and pays it late, the penalty payment (5% of the installment) will be equally divided by Lender (2.5%) and ETHLend (2.5%).
Example: when requesting a ETH loan using TRX token as collateral ETHLend would collect 0,5% of the TRX token collateral amount as fees from the Borrower along with 10% of the total interest (in ETH) from Lender.
So when again it’s time to calculate Reward for Active Users we would firstly convert all collected ERC-20 tokens into ETH, of which we would again use 20% to buy LEND from exchanges to distribute to Users.
The 2nd Round of this Reward will be due distribution 1st of August 2018 and we will again make an announcement about it in due time.
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