Pic related is from yesterday. SALT is an ERC20 token which is changing the way people use crypto by allowing them to use their coins as collateral to take out cash loans. It’s a beautiful evil Jewish fucking thing.
SALT’s platform went live two days ago. They are currently offering an actual functioning product, unlike most coins out there. They’re only making loans to enterprise level members right now so the growth explosion has yet to occur. Also coming in 2018 are crypto backed credit cards.
Pic related is today. Member signups and loans are increasing FAST.
I am literally retarded when it comes to mathematical finance. Can you explain how I get a loan with SALT, pay it back early, and arbitrage the tokens?
Because I've read their fucking website 10 times and still don't have a clue.
1 SALT token can be used to pay off $27.50 in interest and/or principal in your loan balance. SALT is also used to pay for your yearly membership subscriptions and for other services yet to be revealed. Current market price is hovering around $12. You do the math.
fair enough, but how much leverage or risk can I take on? How much borrowed money can I get from 1,000 usd worth of BTC?
Or buy ETHLend. Same concept, cheaper coin.
Take out a $10,000 loan ... divide 10,000 by 27.5 and that’s how many SALT tokens you need to repay it. Multiply that number the current exchange cost of SALT tokens. That’s how much you’ll need to pay for your ten grand.
That’s the simple version. You’ll also need to post some collateral in order to take the loan in the first place, and also these loans are only available to enterprise level members right now ... not basic or premiere. The fact that most people can’t access the loans yet and such is why the tokens are still trading so low. There’s the risk that SALT may misrepresent or alter their terms or just fall apart and fuck everything up. However from reading their white paper and other documents I personally believe they’re gonna be successful.
I love how people think they found some loophole for FREE money that -everyone- can use as if SALt is just going to print money or give away millions out of the kindness of their heart ya'll dumb as a brick there is no such thing as free money
ETHlend is only on some shitty exchange and ran by a team of shady east europeans, gooks and pajeets. Do they even have any fiat on hand to loan people?
SALT tokens are trading at around $13 on exchanges but their retail value is $27.50 when deposited on the Saltlending platform.
You need to use BTC as collateral. Get a loan for $10,000 backed by BTC you own. At a retail value of $27.50 you need 364 SALT tokens to repay it Buy 364 tokens from an exchange at $13 each and repay the loan. Effectively repaying only $4732 for a $10,000 loan.
Even if the SALT tokens can only be used to pay off interest and not principal (as was originally stated) their exchange value should still rise to more or less match the retail price. I agree people got carried away with the whole “free money!” thing at first that’s why we’ve seen the price crash ... but it’s still got the strongest fundamentals of any ERC20 imo
Oh yeah cool and SALT will just call the white house and have them print more money as people do this no problem
Spend SALT tokens are then resold on the Saltlending platform for retail price.
Exchange prices will very quickly match the retail prices.
Saltlending also own a large portion of the tokens already.
They're taking a short term hit to be able to drive up the price and come out ahead. As well as serving as a way to draw attention to their platform with threads such as these.
Is that why it's dropped 10 USD in the last few days?
B A G SALT H I T
Loans need to be overcollateralized by 25%.
So if you put up $1000 in BTC you could loan $800.
The minimum loan amount of $5000 though.
Yeah the arbitrage won’t cost them much in the grand scheme ... between their ICO cash, loan interest and the gains from all the collateral they’ll be seizing from delinquent loans.
I'm sure lots of people like you are very sceptical, rightfully so.
Once we see actual proof that it will work others will follow.
Digits indicate that your proposition is big and true.
So if some whale has 100k in BTC he could take out an 80k usd loan. That’s huge. No normal bank or institution would allow that. With btc crashing now, a bullish holder would be stupid not to take it. Though personally I don’t have much faith in btc ... I’d collateralize my loan with ETH. But I’m not sure if that’s possible yet.
yeah that will never happen they'll just either write off the loan or PAY MORE money to list their owed debts on credit bureaus OR, they'll sell the debt for pennies to collection agencies and still go out of business
Read the white paper. Their block chain automatically liquidated a portion of the assets being held as collateral to cover what you owe. For example if you miss a payment of $300 it will portion off and sell $300 worth of your BTC or whatever.
OKay so it's not a loan, it's just trading BTC for USD which you can literally do now on several sites like bitflur/coinbase
Except you still own the btc being held as collateral. Once the loan is repaid you wall always with all your assets. It’s totally different from selling: you have your cake and eat it too ... unless the market moves against you or you can’t pay the interest or something, that’s the risk
It dropped because whales suppressed the price dor accumulation of cheap salt brainlet
Whatever. I’m just a SALTy bagholder. But I do believe this shit will end up back around $20, the only question is how many moon missions will I miss along the way.
good point volatility of BTC makes this seem really really bad, though. I just don't see mass adoption. I see whales abusing it but that's about it
bags are light
>purchase $8700 worth of ETH >use $2400 worth to buy 184 SALT(on exchange) >use ~$6300 worth for ~$5k "loan" >pay off immediately with 184 SALT tokens >a) sell ETH for ~$6300 & have over $11k >b) buy another 184 SALT & repeat
>whales what a fucking idiot
Can do this for loan amounts between $5-10k with base membership (1 SALT/$13) but it will only work like this for a limited time (supposedly) since they said allowing the full loan amount to be repaid with SALT is an special introductory offer situation.
They don't have any plans to change it apparently.
>in the short term Not yet but it's not guaranteed to last forever as it wasn't in the original abstract/info.