LoanSecure is a decentralized platform built on the Arbitrum blockchain, designed to offer secure loans with a one-time commission, low interest rates, and a 33% collateral requirement. This system allows borrowers to obtain loans under favorable conditions while ensuring maximum security for lenders through the use of significant collateral. A management entity, LoanSecure Management, oversees the entire process to ensure security, transparency, and compliance.

Impact: LoanSecure simplifies the loan process and reduces financial burdens for borrowers by eliminating continuous interest payments. This makes credit more accessible and reduces the risk of over-indebtedness. This one-time commission model also ensures long-term financial sustainability for the platform. Additionally, LoanSecure contributes to the growth of the Arbitrum ecosystem by increasing the number of users and transactions on the blockchain.

Loan Process

1. Loan Application:

   • The borrower requests a loan of 10,000 USD.
   • A collateral of 33% is required, amounting to 3,300 USD.

2. One-Time Commission:

   • LoanSecure Management charges a one-time commission of 10%, which is 1,000 USD.

3. Amount Received by the Borrower:

   • The borrower receives the total loan amount of 10,000 USD.
   • The 1,000 USD commission is deducted immediately.

4. Amount to be Repaid:

   • The borrower must repay the principal amount of 10,000 USD plus a low annual interest of 1%.

Management Entity: LoanSecure Management

Roles and Responsibilities:

1. Loan Supervision: Verifies borrower eligibility, approves loan applications, and manages daily loan operations.
2. Collateral Management: Manages collateral deposits and ensures their return after full loan repayment.
3. Regulatory Compliance: Ensures all operations comply with current financial regulations.
4. Fund Security: Uses advanced security measures to protect lenders' and borrowers' funds.
5. Transparency and Reporting: Provides regular and transparent reports on lending activities, accessible to all platform users.

Financial Details

1. Loan Creation:

   • Loan amount: 10,000 USD
   • One-time commission charged: 1,000 USD
   • Amount received by the borrower: 10,000 USD (total loan amount)
   • Collateral: 3,300 USD (deposited by the borrower)

2. Loan Repayment:

   • Total amount to be repaid: 10,000 USD + 1% (100 USD) = 10,100 USD
   • Collateral of 3,300 USD is returned after full repayment.

LoanSecure Management's Revenue

• One-Time Commission: 1,000 USD (earned immediately at the time of loan creation).
• Interest: 100 USD per year (if the loan is repaid within a year).

Completed Financial Example

1. Loan Issuance:

   • Loan amount: 10,000 USD
   • One-time commission charged: 1,000 USD
   • Amount received by the borrower: 10,000 USD
   • Collateral deposited: 3,300 USD

2. Repayment:

   • Total amount to be repaid: 10,100 USD (including 1% interest).
   • After repayment, the collateral of 3,300 USD is returned to the borrower.

Accounting Record

1. Initially:

   • Asset (Loan Granted): +10,000 USD
   • Liability (Deposit): +10,000 USD
   • Revenue (One-Time Commission): +1,000 USD
   • Collateral (Asset): +3,300 USD

2. Full Repayment:

   • Asset (Loan Granted): -10,000 USD
   • Liability (Deposit): -10,000 USD
   • Revenue (Interest): +100 USD
   • Collateral Return: -3,300 USD

Conclusion

LoanSecure allows borrowers to obtain loans under favorable conditions while ensuring the security of lenders through significant collateral. LoanSecure Management plays a crucial role in supervising and managing the platform, ensuring the security, transparency, and compliance of operations. The bank earns immediate revenue through the one-time commission and additional revenue through low-interest rates. Using blockchain technology, LoanSecure ensures transparency, security, and efficiency.