Lendoit describes itself as “the next generation of P2P lending platforms”. Find out how it works today in our review.
What Is Lendoit?
Lendoit, found online at Lendoit.com, is a decentralized P2P lending platform that connects borrowers and lenders from around the world in a trusted, fast, and easy way. The platform is built on blockchain technology and smart contracts.
Overall, the goal of Lendoit is to offer a free market lending environment. Here’s how the developers explain the platform:
“Lendoit is a complete free market environment than contains all the elements that a credit business needs to function. Borrowers and lenders will find a loan marketplace complemented by a default marketplace, sustained by a global network of underwriters and scorers that let all market principants [sic] engage in business in legally steady way.”
Awkward wording and spelling mistakes aside, Lendoit is a blockchain-based lending platform where a free market determines the cost of loans.
How Does Lendoit Work?
Lendoit is a smart contract-powered ecosystem built on top of the Ethereum blockchain. The platform is catered to four different types of network participants, including all of the following:
- Borrowers: Borrowers can apply for loans using the Lendoit Smart Loan Contract.
- Lenders: Lenders can lend funds by sending funds to the Lendoit Smart Loan Contract.
- Reputation Consumers: “Reputation consumers” can get information about an Ethereum user via the native Smart Reputation Contract, which allows for validation of addresses before tokens are sent or physical assets are exchanged for tokens.
- Collectors: Collectors are able to buy debt on the secondary market by interacting with the Smart Loan Contract.
Borrowers can use Lendoit to apply for a loan in 3 minutes. To request a loan, the borrower needs to upload relevant documents like ID, a passport, etc. These documents are sent to a verification provider. Once the information is verified, the loan application is sent to a professional and verified scoring provider. This provider calculates a score for the current loan application.
After the score has been calculated, Lendoit will publish the respective Smart Loan Contract on the Ethereum blockchain and in the Lendoit marketplace. That contract stores the rules and logic of the loan, acting as an immutable agreement between lenders and borrowers.
The loan is then inserted into the marketplace for a bid. Market forces ensure that the highest possible bid (or lowest possible rate) is used for the loan. Lenders provide money to the smart contract, then borrowers withdraw money from the smart contract.
The ecosystem revolves around LOAN tokens, which are ERC20 tokens on the Ethereum blockchain. These tokens can be used for multiple purposes, including the right to lend on the platform and participation from interest fees.
Lendoit promises the following features:
No Intermediaries: The Lendoit smart contract acts as the middleman and intermediary in your financial transaction, so there’s no middleman. Using the smart contract, both borrowers and lenders can interact with each other through a decentralized lending environment.
Trusted and Secure: Lendoit’s smart contracts aim to create a trusted, secure lending process.
Decentralized and Anonymous: Lenders can remain completely anonymous without the need to register anywhere. Lenders just select their preferred loan from the marketplace, then launch the loan through their wallets.
Who’s Behind Lendoit?
Lendoit is led by Ori Erez (Co-Founder and CEO), who has a decade of experience in the fintech industry, including the development of trading systems and trading algorithms. Other key members of the team include Vlad Amirov (Co-Founder and CTO), Yoav Pinkas (Co-Founder and COO), and Avi Ben David (Co-Founder and President).
Overall, Lendoit claims that its team has over a century of collective experience in the fintech industry. The company was formed earlier in 2017. The first beta version of Lendoit is scheduled to launch in Q1 2018.
Lendoit is headquartered in Givatayim, Israel (part of the greater Tel Aviv area).
Earlier this month, Lendoit announced that it had partnered with one of Israel’s biggest institutional investment firms, Migdal Investment Banking.
The LOAN Token Sale
LOAN tokens are utility tokens for the Lendoit platform. 60% of the total supply of tokens is available during the crowdsale. 15% is going to the company, 10% to the team, 10% to early contributors and advisors, and 5% to a bounty and LOAN reserve pool.
The ICO is scheduled for December 13, 2017 to January 13, 2018.
Lendoit aims to create a decentralized P2P lending platform that connects borrowers and lenders from all over the world using smart contracts and blockchain technology. The platform creates a free market where market participants determine the price of loans, allowing borrowers to access lower interest rates while lenders can choose where they invest.
To learn more about Lendoit, visit online today at Lendoit.com. The ICO begins on December 13.