dLEND
socially financed via digital assets
Last updated
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socially financed via digital assets
Last updated
Was this helpful?
This is the end point of our first 2-year Roadmap for Aspen Labs. The reason that we have put this as our last application in dAPP stack is because it will require the most infrastructure to make functional. Not simply digital infrastructure but real-world infrastructure and compliance with regulations in multiple countries.
Now we need to discuss the purpose of dLEND and how it will function.
dLEND is a social financing application that allows lenders to pool their money and earn passive interest rates when Aspen lends on their behalf. Essentially what we want is that our users deposit a stable coin and we invest in real-world assets like student loans and mortgages, or possibly REITs.
Currently most lending occurs as crypto to crypto loans with the requirement of 50–300% collateral to secure the loan. Our thought is that this is a circular environment. For crypto to access the full potential it has it eventually has to link to some ways to real-world applications.
This is how we want to link cryptocurrencies with real-world assets. In less developed nations the interest rates for student loans can run into the 12–16% range depending on the school and the relationship the borrower has with the lender.
High interest rates in nations with high rates of population growth afford an opportunity, nations like India, Indonesia, South Africa, Ethiopia, Brazil or Turkey for dLEND to offer competitive loans in the markets for those seeking education in Western countries. We would prefer students seeking higher education in Western countries because the loan amount is higher and the possibility of default is much lower.
The home market is something that is more difficult to enter into in developing nations as the market is not based on the turnover that happens in North America and Europe.
What will happen is a divergent focus between student loans and home loans. Where student loans are focused on borrowers from developing nations heading to developed ones and home loans are focused on nations with highly developed real estate markets.
There are significant opportunities to move into real-world lending. But what Aspen Labs needs is to leverage both the valuation of our company token and the profitability of the Hypersphere to allow us the ability to establish the infrastructure to successfully carry out our attempt to create a social financing dAPP.
Well we have a quick graphic to help you understand what we want to build together…
How dLEND works is simple the lender deposits their stable coin, we convert that to fiat, we loan that fiat to a qualified borrower and upon repayment the initial lender receives their principle plus interest.
To be honest we could really personalize your lending profile to an immense degree. Allowing users to say choose a region for their money to be lent. For example a user wants to earn interest on student loans. They decide they want to fund students from South-East Asia heading to America for higher education. This may be an option if it does not result in balkanization of funds, we would want to prevent this so we as a company have maximum flexibility to utilization of funds for the benefit of our users.
These are meant to be stable investments. So returns would be lower than a lot of the yield farming that occurs within crypto. But, we believe their is a space for low-risk to lender debt assets like student loans and home loans, which can provide consist and stable returns over years.
