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
-
Loan Application:
- The borrower requests a loan of 10,000 USD.
- A collateral of 33% is required, amounting to 3,300 USD.
-
One-Time Commission:
- LoanSecure Management charges a one-time commission of 10%, which is 1,000 USD.
-
Amount Received by the Borrower:
- The borrower receives the total loan amount of 10,000 USD.
- The 1,000 USD commission is deducted immediately.
-
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:
- Loan Supervision: Verifies borrower eligibility, approves loan applications, and manages daily loan operations.
- Collateral Management: Manages collateral deposits and ensures their return after full loan repayment.
- Regulatory Compliance: Ensures all operations comply with current financial regulations.
- Fund Security: Uses advanced security measures to protect lenders' and borrowers' funds.
- Transparency and Reporting: Provides regular and transparent reports on lending activities, accessible to all platform users.
Financial Details
-
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)
-
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
-
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
-
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
-
Initially:
- Asset (Loan Granted): +10,000 USD
- Liability (Deposit): +10,000 USD
- Revenue (One-Time Commission): +1,000 USD
- Collateral (Asset): +3,300 USD
-
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.
LoanSecure History
-
applied to the CollabTech Round and Thresholds Experiment 4 months ago which was rejected