Crypto Lender Dharma Officially Enters Ethereum Blockchain
Interestingly, people in the crypto space now have another way to earn interest on their digital currencies. This is due to the fact that Dharma has finally entered the Ethereum blockchain.
Dharma Officially Launches
According to an official announcement, the lending startup is officially open for business. This will see both borrowers and lenders being matched peer-to-peer in order to set up cryptocurrency lending terms in what is deemed to be a non-custodial fashion. The process, in particular, will be governed by the firm’s very own smart contracts.
Apparently, Dharma will work differently from its contemporaries. This is simply due to the fact that it would offer depositors a fixed rate of return, something that will be applied directly on the cryptocurrency they make available for lending.
However, there is a catch to the services the startup will offer. Basically, deposits will only have the ability to earn interest if the assets are put to use by borrowers. According to the CEO of Dharma named Nadav Hollander, the company will offer fixed-term loans alongside fixed rates. The executive added that the company has been hell-bent on significantly improving the overall user experience for both parties.
Hollander further added that there are a bunch of ways for people to earn interest on their crypto, all of which can be achieved in a non-custodial manner. The only thing to keep in mind is that these ways are often in need of a much higher degree of technical knowledge and abilities.
Improving Financial Services
Dharma originally announced its company as an open protocol. Eventually, it became a firm solely focused on facilitating the marketplace it developed. Hollander explained that all of them in the firm decided to go for being a user-first entity more than be a developer-first. But as far the underlying smart contract is concerned, it is still considered open source.
The company has been successful so far in facilitating loans already under a pilot that managed to reach at least 25,000 users. And according to Dharmalytics, which is a third party explorer developed by ConsenSys’s Matt Tyndall, at least $116 million in principal has been borrowed so far. The figure, in particular, covers more or less 1,575 loans as of press time.
In a press release, the co-founder and COO of the company named Brendan Forster said that they are witnessing a much broader shift to blockchain-based financial services. And through this shift, it will open the gates to a financial system that is not only efficient and programmable but also equitable.