ETHLend has made few changes regarding on how reputation is managed on ETHLend and the token sale encourages early purchase of LEND.

Credit Token (CRE), which is a native token at ETHLend for representing reputation, will be used solely on ETHLend platform to present the borrower’s reputation. For the token sale, ETHLend introduces profit sharing LEND token.

Credit Token (CRE) is minted on each repayment of the loan ONLY to the borrower. Each 1 ETH loan equals to 0.1 CRE. CRE cannot be transferred to another address or sold. CRE will solely represent the borrower’s reputation. CRE is used to access unsecured lending (once the function is live). 1 CRE allow to borrow up to 1 ETH loans without a collateral. Therefore, 0.1 CRE allows borrowing up to 0.1 CRE without a collateral. The idea is to create unsecured (no collateral required) lending market on ETHLend on the basis of the reputation that the borrower has previously gained on secured loans. In case the borrower does not repay a loan, all borrower’s CRE is burned and lost forever. This raises the threshold to default.
LEND token for fund raising. ETHLend issues 1 billion LEND tokens for sale and another 300 million tokens for the development fund. There will be no follow-up sales and no new LEND tokens minted. Each token holder is entitled to a profit sharing model on the fees that ETHLend collects and distributes monthly or quarterly to the token holders from January 2018 onwards. The profit sharing structure consist of base 5% profit and additional 1-5% profit on annual growth based on fees:

  1.  First year (during 2018) = 5%
  2.  5% + additional 1% when fee revenue is 20% higher than in previous year
  3.  5% + additional 2% when fee revenue is 40% higher than in previous year
  4.  5% + additional 3% when fee revenue is 60% higher than in previous year
  5.  5% + additional 4% when fee revenue is 80% higher than in previous year
  6.  5% + additional 5% when fee revenue is 100% higher than in previous year

The aim of the profit share is to compensate early adopters and contributors on ETHLend. The profit share rewards the first hand token holders since ETHLend is growing, early adopters might receive up to 10% on profit sharing. Once the decentralized lending market stabilizes, the profit sharing might relax to 5-6%.

LEND token holders are exempted from the borrowers fee on ETHLend, when pledging LEND for a loan. This function aims to take into account that vast amount of token contributors that are ETHLend users. Fee exemption encourages to use LEND instead of other ERC-20 tokens as a collateral. This provides value to use for the token holders and the profit sharing provides value to hold. The idea is to deliver a strong token to the token market, and LEND by design and ETHLend behind it, would provide an ecosystem for growth. 24-month vesting model for founders and developers supports our aim to provide a valuable token.

The pricing of LEND is updated to correspond the profit share and fee exemption benefits:

  1.  First 1 000 000 priced at 7 000 LEND per 1 ETH
  2.  1 000 001 to 10 000 000 LEND priced at 6 000 LEND per 1 ETH
  3.  10 000 001 to 500 000 000 LEND priced at 5 000 LEND per 1 ETH
  4.  500 000 001 to 750 000 000 LEND priced at  4 000 LEND per 1 ETH
  5.  750 000 001 to 1 000 000 000 LEND priced at 3 000 LEND per 1 ETH

The token sale encourages early purchase of LEND. The token sale period is 30 days and the launch of the token sale will be announced soon. All unsold tokens are burned and no additional LEND is minted, ever.

For details on White Paper:
https://github.com/ETHLend/Documentation/blob/master/ETHLendWhitePaper.md

For discussions:

Slack:
https://join.slack.com/ethlend/shared_invite/MjAzMTM0MzEyNzA3LTE0OTg0MDk0NDItOGY0MTlkMTlmZA

Reddit:
https://www.reddit.com/r/ETHLend/

Telegram (new) As of this post, Telegram must be registered via iPhone or Android first.:
https://t.me/joinchat/FWu2CQ0ZRCeWfey4eP8VhQ