Gelios aims to be the first completely customizable cryptocurrency P2P lending platform. Find out how it works today in our review.
What is Gelios?
Gelios, found online at Gelios.io, is a lending platform that aims to create “the new paradigm” for peer-to-peer, cryptocurrency-based lending platforms.
The token sale for Gelios’s GLS tokens is underway until April 2018. The project is in development by a Moscow-based company named Brainysoft.
Obviously, you should be hesitant any time you see the word “lending platform” and “cryptocurrency” in the same sentence. Many of these platforms – like Bitconnect and DavorCoin – have been shut down because they’re widely believed to be Ponzi schemes. Gelios, like these lending platforms, advertises returns of 2 to 3% per day for lenders.
That being said, there are legitimate lending platforms out there. Furthermore, Gelios doesn’t advertise itself as some get rich quick scheme. Instead, it’s just a lending environment that lenders can use to earn returns by lending money to borrowers around the world. Let’s take a closer look at how Gelios works.
What Problems Does Gelios Seek to Solve?
Gelios believes today’s lending platforms have a number of serious problems. Here are some of the problems identified by the Gelios whitepaper:
Lack of Customization:
One major problem is that users can’t customize risk analytics to their investment goals. Some investors want high risks and high returns. Others want safety and low returns. Existing lending platforms, however, don’t let you choose. Gelios wants to allow users to customize their lending platform based on things like borrower credit history, borrower KYC, and more.
Narrow Sales Funnel:
Classic P2P lending platforms don’t allow users to widen the sales funnel. This means users can only rely on traffic provided directly by the platform. Users cannot start their own lending business, for example, or market their loans to third parties outside the platform.
Lack of Trust in Each System:
Gelios uses the Hyperledger Fabric Blockchain to implement trustworthy statistics about participants in the lending platform. They describe their system as “perfect to ensure trust between participants in the system itself, and between the system and the customer.”
How Does Gelios Work?
Gelios lets users customize their lending system. Users can choose to have high risk and high return loans, for example, by lending to lesser-qualified investors. Or, investors who want more safety (and lower returns) can lend money to borrowers who’ve verified their identity and completed other checks.
Lenders can also customize their loans based on credit history, age groups, and more.
The entire system is built on a decentralized credit bureau built on the Hyperledger blockchain. That blockchain is used to “check data and implement algorithms”, then process each loan transaction.
Gelios claims lenders can expect to earn “payday loan rates” of about 2 to 3% per day by lending their money through the platform.
Lenders earn money by choosing various lending algorithms. Those algorithms aren’t developed by Gelios. Instead, they’re developed by Gelios users – including risk analysts. Risk analysts create algorithms based on the hundreds of data points accessible through the platform. Every time a risk analyst’s algorithm is used for a transaction, the analyst gets a cut of the transaction.
Benefits of Gelios
Gelios offers benefits for lenders, borrowers, and risk analysts:
Gelios gives users a cryptocurrency wallet that can be used worldwide.
Better Access to Credit:
Users can access credit from Africa, Southeast Asia, and South America.
Gelios advertisers rates of returns of 2 to 3% per day or 800 to 1000% per year (they describe these rates as “payday loan rates”).
Flexibility and Customizability:
Lenders can choose their risk algorithm, yield, and country, among other customization factors.
Create your own lending business by whitelabeling the Gelios platform.
Borrowers can access Gelios loans through the mobile app and the cryptocurrency wallet. Both platforms can be accessed from anywhere in the world, including developing countries.
Easy to Use:
Gelios offers multiple types of identity verification, “from distant to face-to-face”.
Gelios claims that borrowers can expect to pay lower rates to borrow money. However, they also mention that lenders can expect to earn 2 to 3% per day from their loans, so it’s not totally clear how Gelios plans to offer lower rates to borrowers.
For Risk Analysts
Access Mobile App Data:
Gelios will give risk analysts “more than 100 metrics” from mobile devices. Risk analysts can check this data before providing the loan.
In Gelios, the blockchain acts as a decentralized credit bureau.
Develop Your Own Algorithm:
Gelios lets risk analysts create their own algorithm, then sell it to borrowers. Risk analysts who develop their own algorithm will make a profit based on each transaction.
Who’s Behind Gelios?
Gelios is in development by a company called Brainysoft, which is headquartered in the Skolkovo Innovation Center in Moscow, Russia. The company launched Gelios.io in June 2017.
By August 2017, Brainysoft was earning $3 million USD per month in annual revenue with a total of 90 clients. The team began developing the Gelios MVP in November 2017. Further development is expected to take place throughout 2018.
The company is led by Victor Orlovsky (President), Galina Bakhmetyeva (CEO), and Denis Krestin (CDO). Gelios is officially registered in Scotland under the name Gelios Lending Solutions LP (company number SL032527).
The Gelios GLS ICO Token Sale
The GLS token is an ERC20 token built on the Ethereum blockchain. Tokens are priced at $1 USD during the token sale. The token sale started on January 21 and is continuing into April 2018.
Gelios GLS ICO Conclusion
Gelios is a lending platform in development by a Russia-based company called Brainysoft. That company is creating a whitelabel lending platform. Users can integrate the platform into an existing lending business.
To learn more about Gelios and how it works, visit online today at Gelios.io. The token sale for GLS tokens is underway until April 2018.