TokenLend aims to give users around the world the ability to invest in real estate-secured loans. Find out how it works today in our review.
What Is TokenLend?
TokenLend is a lending platform specializing in real estate-secured loans. You can invest in these real estate-secured loans using cryptocurrencies or fiat currencies.
The TokenLend platform seeks to remove the uncertainties normally faced by small investors by helping them build a secured loan-based investment portfolio delivering a competitive, predictable, and consistent return.
TokenLend is based on the Ethereum blockchain, making it a decentralized lending platform. The platform is being developed by the same team that created the popular PC software DAEMON Tools.
How Does TokenLend Work?
TokenLend was created with the goal of creating a secure lending platform available to borrowers and lenders worldwide. The platform will feature a list of carefully selected and pre-checked secured loans available for investment. TokenLend will only accept loans from trusted EU loan originators.
TokenLend will re-validate information received by the loan originator, including the borrower’s personal details, pledge information, appraisal, and LTV ratio. The end result of this verification process is that loans will only be listed on the TokenLend platform if they meet strict loan selection criteria.
TokenLend allows borrowers and lenders to sign onto the platform then access an easy-to-use dashboard. The ecosystem revolves around TokenLend tokens, or TLN. You transfer a desired amount of TLN to the loan address, then receive Loan Participation Notes (LPN) in return. You use LPNs to interact with lenders on the TokenLend marketplace.
Key features of TokenLend include all of the following:
When TokenLend is released, it will feature a pre-arranged list of secured loans from trusted EU loan originators. It will also have a user-friendly interface for future partners. During the first stage, TokenLend will only accept mortgage loans backed by “the most trustworthy real estate properties.” This will create the best risk/income value for users.
TokenLend will have a loan participation note, or LPN, market where users can trade ongoing investments for immediate liquidity.
TokenLend will be built on Ethereum as a decentralized app. Every object will be represented as a smart contract, and value transfers will be completed using tokens.
How To Use TokenLend TLN
Here’s the basic process you can use to get a loan or provide a loan via TokenLend:
Step 1) The lender adds a new loan to the system via the dashboard. Once the loan details are validated and successfully verified by platform personnel, the loan smart contract is created and published onto the platform.
Step 2) Users purchase Loan Participation Notes, or LPN, for a particular loan by transferring a desired number of TLN tokens to the loan address. The loan smart contract then generates the LPN contract with a principal value that equals the amount of TLN transferred by the user as well as a personal repayment schedule based on the creation timestamp of the LPNs and loan terms.
Step 3) The LPNs are linked to the user’s ETH wallet address as the beneficiary of the interest payments. The total amount of TLN received from all users is transferred to the loan originator’s account as the loan principal.
Step 4) According to the terms of the smart contract, the borrower sends interest payments and principal repayments (if applicable) to the platform.
Step 5) Once the borrower performs the last transaction and completes the repayment, the LPN contract closes the repayment schedule and sends the interest along with the remaining TLN principal to the associated account.
Step 6) The loan is then considered closed, the wallet address association is removed, and the LPN contract is considered fully executed.
Each loan participation note, or LPN, represents the smallest indivisible share of a loan. Users can invest in a particular loan by purchasing any number of available LPNs using funds from their account balance. Funds spend on such purchases will be taken from the user’s account and locked into the loan’s smart contract.
After the loan term is complete or repaid in full, the corresponding funds will be deposited into the accounts of users who own the corresponding LPNs. LPNs will be tradeable within the TokenLend platform, allowing users to transfer and sell their investments for quick liquidity.
What Problems Does TokenLend Seek to Solve?
TokenLend’s whitepaper explains a number of problems with today’s lending and financial systems. First, traditional banking products and services are archaic and slow because of all their red tape and paperwork:
“In a world of cross-continental currency transfers, decentralised databases and smart contracts, people are still limited by their geographical location and residency. Different legislations, currencies and complex taxation make business activities more complicated than it should and could be.”
To get a loan, you naturally have to go through verification checks and pay fees. However, the specific procedures are vastly different worldwide due to different regulations. This inhibits the creation of a truly global lending platform. That’s a problem TokenLend seeks to solve.
The TokenLend Token Sale
There’s a total supply of 130,411,585 TLN tokens with 93,750,000 TLN tokens sold during the ICO. Tokens are being sold at a rate of 1 ETH = 2500 TLN, with a soft cap of 5,000 ETH and a hard cap of 41,000 ETH.
Of the total supply of tokens, 75% are reserved for the ICO, with the remaining tokens allocated for the pre-sale (7%), advisors (3%), the team (14%), and bounties (1%).
The pre-sale began on March 1 and will run for 11 days. The main ICO, meanwhile, is scheduled to begin on March 26 and last for 45 days.
Who’s Behind TokenLend TLN?
TokenLend was created by the same team that launched the popular PC software DAEMON Tools. The team has 15+ years of software development experience over 10 years in business. They also have over 100 million worldwide users.
Key members of the TokenLend team include Ivan Kovtun (Chief Operating Officer), Sergei Naiden (Chief Executive Officer), Vitaly Russkih (Chief Technical Officer), Aleksandr Petrov (Blockchain Architect), Maria Vita (Business Development Officer), and Tanya Chuh (Chief Community Officer).
TokenLend was launched in 2017. The company is registered in Belize, although most of the executive team comes from Estonia or Ukraine.
TokenLend TLN ICO Conclusion
TokenLend seeks to launch early access to its lending platform by October 2018, with a technical beta release occurring in summer 2018. The full public release will occur in March 2019, with income distribution to token holders scheduled for April 2019.
To learn more about TokenLend and its ongoing development, visit online today at TokenLend.io.