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Discover All About SALT Lending (SALT)

SALT Lending is a blockchain-based lending platform that offers users the opportunity to obtain loans backed by cryptocurrency. Users can deposit accepted tokens such as Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Doge (DOGE), DASH (DASH), or SALT (SALT) as collateral in order to receive a loan in the form of fiat currency or stablecoin.

SALT Lending has its own native token named SALT, which can be utilized to reduce the interest rate on a loan and can also be used as secondary collateral. Currently, SALT can be redeemed at a value of $7.50 for interest reductions on loans, although this policy and valuation may change.

The company, operated by Salt Blockchain Inc., was established in 2016 and operates as a for-profit entity known as Salt Lending LLC: Salt Master Fund II, LLC - NMLS 1711910.

The Innovators Behind SALT

SALT was founded in 2016 in Denver, Colorado by a group of Bitcoin enthusiasts and finance professionals. Their objective was to introduce a product that allows users to leverage their cryptocurrency for a cash loan while still retaining ownership. SALT disrupted the cryptocurrency market by introducing asset-backed lending through blockchain, providing digital asset holders with increased liquidity.

Today, SALT is a regulated and licensed company that not only develops crypto-backed lending technology but also offers scalable, insured institutional-grade crypto custody and blockchain monitoring products. With a team of over 40 core employees, technical developers, and experienced advisors, SALT has established itself as a leader in the industry.

The Distinctive Aspects of SALT

As stated in its whitepaper, SALT was the pioneer in providing cryptocurrency-backed loans, creating a unique lending market. The company operates under regulation and holds various licenses for lending, collection, and loan servicing.

SALT offers multi-collateral loans with fixed rates, flexible terms, and multiple loan-to-value (LTV) ratio options. Payouts can be received in cash or stablecoin. The platform does not impose prepayment penalties or bank-style origination fees. The maximum loan-to-value (LTV) ratio ranges from 30% to 70%. Interest rates vary depending on the chosen loan term and LTV. Additionally, the platform serves as an insured cold storage wallet and has its own SALT token, which users can utilize to decrease loan interest rates and more. SALT provides lending services both in the United States and internationally, catering to individuals and institutional entities such as mining businesses and hedge funds. The company offers live customer service, client support, and best-in-class compliance programs to meet the needs of its users.

The SALT Platform was designed to address the volatility of cryptocurrency and prioritize wealth preservation. In the event of a margin call, assets are automatically converted to a stablecoin instead of being liquidated, making this a unique feature in the lending space.

Here's how it works:

• When a loan reaches a forced liquidation LTV, instead of immediately selling collateral assets to restore the health of the loan, the SALT Platform converts some portion of the collateral assets to a stablecoin thus preserving collateral value.
• Once the health of the loan has been restored, the borrower can ask to convert the loan collateral back to the original cryptocurrency assets, such as BTC, ETH, LTC, etc…
• This gives users the opportunity to convert assets as the market is coming back up, creating the potential for users to not only preserve wealth, but grow it.

The SALT Platform provides a loan health notification system through email, phone, text, and app alerts, available on both iOS and Android. While borrowers are generally notified of a margin deficiency, the system may liquidate or convert pledged assets without prior notice to ensure that the minimum maintenance requirements of the loan are met. It is important to note that the liquidation or conversion of pledged assets could have adverse tax consequences, and SALT advises borrowers to consult their tax advisor for a comprehensive understanding of the implications associated with pledging digital assets as loan collateral.

The Availability of SALT (SALT) Coins

There is a total of 120,000,000 SALT tokens in circulation.

SALT, the native token of the SALT Lending platform, serves various functions for users and can be freely traded outside the platform.

SALT conducted its initial coin offering (ICO) in 2017, with the presale and crowdsale accounting for approximately 67% of the token supply. The remaining tokens are currently held in treasury by SALT Blockchain Inc.

In September 2020, SALT reached a settlement with the SEC and paid a $250,000 fine related to an investigation of its ICO. As part of the settlement, SALT Blockchain Inc. agreed to publicly register the SALT token as a class of security under Section 12(g) of the Securities Exchange Act of 1934 and inform ICO purchasers of their right to submit a claim to recover the consideration paid, among other settlement terms.

The Protection of the SALT Network

The Salt Platform ensures the security of its networks and user funds by holding assets in insured cold storage. Keys are generated offline, stored offline, and transactions are signed offline, significantly reducing cyber security threats as keys are never exposed to network-connected devices. The multi-signature security process prevents any single party from moving user funds. User funds are secured through key encryption and layers of distribution, protecting against both internal and external threats. The Salt Platform employs a custody framework to safeguard cryptoassets using a combination of people, processes, and technology.

The native token of SALT, SALT, is an ERC-20 token issued on the Ethereum blockchain. This means that any on-chain SALT transactions are validated and secured by the Ethereum mainnet. Miners within the network compete to add new blocks to the blockchain, and a majority of all nodes in the network must validate a record for it to be posted.

Find Out More:

Learn about NEXO, another lending platform that accepts cryptocurrency as collateral.

Learn about CEL, another platform that offers crypto-backed loans.

Learn about Compound, a popular platform for crypto lending.

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