How Does Secure Lending And Borrowing Work In ComputeEx?

Updated on September 05, 2019

ComputeEx is a one-in-all digital exchange platform within the EraSwap Ecosystem which enables users to trade across various crypto exchanges and get the best deals in real-time.

Lend & Borrow is an important aspect of ComputeEx, which allows users to leverage more benefits from their digital assets by using them to lend and borrow. Here’s all you need to know about ComputeEx Lending & Borrowing.

ComputeEx Lending & Borrowing - What is it?

ComputeEx lending & borrowing is a special asset swap program under which people in need will be able to borrow e-cash by using their digital assets as collateral.

One obvious benefit of this program is for borrowers or people in need of small funding. As of now, digital asset owners had no other option but to sell their crypto assets in order to make e-cash. The ComputeEx lending & borrowing program will enable them to get a quick loan by putting their digital assets as a guarantee. This way, they can get easy funding without losing control over their assets.

The lenders or people who lend e-cash to digital asset owners will benefit in the form of interest on the loan as well as collateral e-cash in case the amount is not paid back by the borrower.

More than anything, this ComputeEx feature will provide an easy, secure and seamless lending & borrowing facility to all the users in the Era Swap Ecosystem.

ComputeEx Lending & Borrowing - Features & Terms

Here are a few key points about ComputeEx Lending & Borrowing:

This is a pure lending & borrowing program, which involves no sale of digital assets.

Loans can be acquired by putting digital assets as collateral/guarantee

The control of digital assets will remain with the original owner during the lending period

The borrowing to collateral ratio is 1:2, which means a borrower must put as security double the amount (digital assets) of what they are borrowing.

All the transactions are processed through an escrow account, and the user funds as well as digital assets are protected through the contract.

There is a minimal service fee of 0.25% per transaction

A 50% discount in service fee will be given on payment with EST

How it works

In order to be able to borrow e-cash via the ComputeEx Lending & Borrowing system, a user must have sufficient digital assets with them. For instance, if you want to borrow $1,000, you must have digital assets worth $2,000 or more in your possession. Here’s how the lending-borrowing process works at ComputeEx.

Create a borrowing request: A borrower can create a loan request by filling a form available in the system. They need to mention their loan terms, including the details such as lending asset type, interest rate, loan duration, collateral asset type, etc.

Create a lending request: A lender who wishes to lend e-cash through this system also needs to fill a similar form, providing details of loan duration, asset type, interest rate, etc.

Matching: All the lending and borrowing orders received by the system are placed in a shared order book, where they are matched against each other. Users can also check and match the orders manually.

Loan Security: Once a match is found, the borrower can deposit the collateral amount, in the form of digital assets, which is stored in the escrow wallet for the loan period.

Approval and Processing: The system will check the collateral against loan request and approve the borrower’s request accordingly. Once the request is approved, the funds are processed to the borrower’s account.

If the borrower manages to pay back in the given term, the lender will get his/her e-cash back along with the interest. However, if the borrower fails to pay back in time, his collateral is seized by the system and utilized to pay back to the lender.

So, start using ComputeEx lending and borrowing platform today for seamless benefits. For more details visit: