NULS/NerveNetwork is happy to announce a new collaboration with Cobalt Lend, a company specializing in cryptocurrency and credit card processing. Both companies are fintech based startups.
Launched in late 2020, Cobalt Lend is a community-based lending platform on the blockchain driven by community vote. The company is developing a software suite that enables credit card and cryptocurrency processing together in one free mobile Dapp. They are also going to offer “community member to community member” lending and borrowing, which will be built out on our platform (NULS). Both parties earn rewards in Cobalt tokens for participation. The main aim is to replace big banks by being cheaper and faster.
One of the main aspects of Cobalt Lend is community voting. Members submit their loan proposals. Next, the proposals are vetted by Cobalt Lend, ensuring all documents are correct and accurate. All loans must meet community standards before being offered to the community.
Once vetted, the proposals are put forward for the community. The community is then able to vote through the user portal dashboard. The foundation then supplies the borrower with a contract address for collateral. The collateral is locked in until the loan is fulfilled or denied by the community.
Each vote cast for a particular loan costs the member 1 Cobalt (CBLT) Token. All of the members that voted on proposals are entitled to the interest earned from a positive performance. The system ensures that both (yes and no) parties have equal votes to protect the treasury.
If the community approves the funding, the funds disperse from the treasury to the borrower. The loan is then repaid over time, depending on the agreed upon terms. The interest is divided among the treasury and the original wallet addresses that voted on the proposal.
Cobalt Lend also has proposals for non-loans. The foundation automatically releases them to the mobile dashboard for the community for a vote. All approved are carried out by Cobalt Lend. Since they are non-loan proposals, they are available to be voted on for seven days longer.
Decentralized finance (DeFi) startups have been on the rise for several years. The term refers to blockchain or cryptocurrency-based finance applications. DeFi startups aim to eliminate or reduce the need for a central source of control.
The value of the DeFi market has been increasing exponentially, especially in 2020. The funds locked in DeFi platforms increased by 700% since June, according to DeFi Pulse. The total locked funds increased to over $7 billion from about $1 billion. The industry is expected to grow significantly in the coming years.
When asked, why NULS/Nerve?Cobalt Lend replied
“what made us pick NULS/Nerve is developer friendliness and the freedom to build out our own ideas with the support of a proven team (NULS/Nerve) — no one else gives you a premade module to build your blockchain like NULS/Nerve.”
The best way to get involved with NULS is to join in!
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