Today, we’re very pleased to announce two important changes to our core digital asset lending business, changes that we believe will allow us to meet the unique needs of individuals as well as those of our core institutional market. Importantly, while we are proud to share what is changing, we are equally as proud of the things that will remain the same, including our strong belief in blockchain-based assets being an integral part of a fairer financial future, and our commitment to contributing to that future in a way that benefits all.
We believe that there is significant need and demand for “prime services” style offerings within the maturing market, bringing together trading, custody, and borrowing and lending into an integrated service under one roof, and that working with partners to integrate lending capability into their solutions will be a fruitful strategy for us.
Accordingly, we have completed a transition from operating our platform as an independent operator to focus on licensing the core technology for loan origination and automated life cycle management. We are very pleased to announce today that we have agreed our first licensing deal with Nasdaq listed Eqonex Group (NASDAQ : EQOS), who have in turn launched their lending business and successfully completed their first loan on the platform.
In addition to further licensing of our post trade services, we will also be working on taking our platform more towards supporting regulated securities financing activities, and will provide more information about this in due course.
We believe that there is no reason that individuals should not benefit from the same standards expected by regulators and top tier institutions, and our ambition is to bring the platform we built for the big boys to a much wider audience.
Launching soon, a new consumer focused Lendingblock platform will combine the infrastructure and standards trusted by NASDAQ-listed clients and regulators with the inclusivity and transparency that blockchain and DeFi can allow. Our initial MVP release will support fixed term deposits in a range of assets, as well as fixed term stablecoin borrowing against a range of assets.
As part of the launch, we are also introducing significant changes to the utility of our LND token. This new model has four key features:
- From launch, Lendingblock users will be able to use their LND holdings to qualify for tiered rate bonuses or discounts, making it cheaper to borrow and boosting returns on deposits;
- Once market liquidity has developed sufficiently after launch, Lendingblock users will be able to use LND for payment or receipt of interest at enhanced borrowing or deposit rates;
- Once market liquidity has developed sufficiently after launch, Lendingblock users will be able to use LND as collateral (along with BTC, ETH, BCH, XRP, EOS and others) to secure borrowing of other assets including stable coins;
- Shortly after launch, as a form of governance, Lendingblock users will get a say in shaping the roadmap ahead, with decisions including feature enhancements and asset prioritisation involving an online vote of Lendingblock users.
Lastly, we will also be introducing a monthly LND airdrop to the top Lendingblock stakers, borrowers, and depositors. This will come from a dedicated fund of 150,000,000 LND, and 10% of the remaining Reward Fund balance will be airdropped every month. For example,
- In month one, the fund will distribute 15,000,000 LND (10% of 150,000,000), leaving a Reward Fund balance of 135,000,000 LND
- In month two, the fund will distribute 13,500,000 LND (10% of 135,000,000), leaving a Reward Fund balance of 121,500,000 LND
Note that the award value will depend on the value of LND, but the LND values themselves will be fixed.
We are very excited as a team by what lies ahead, and can’t wait to share the voyage with you.