Interest-free loans made simple.
Through SmartLending, any SmartDeFi token can be used as collateral to take out loans against its baseline value - without having to sell or burn the SmartDeFi token.
Upon taking the loan, the borrower instantly receives the baseline value for the tokens that were collateralized. The borrower then has 30 days to repay the loan without interest. If this lending period is too short and the loan cannot be repaid in time, the user may extend the lending period by another 30 days by burning 0.1% of their collateral.
Note, it is important to extend SmartLoan before 30 days expires, otherwise tokens in collateral will be lost. After 30 days, the loan defaults and the collateral is burnt without repayment or extension. Because the collateralized tokens are held inside the smart contract and considered part of the circulating supply, they continue to accrue the asset-backing as they would in the investor's wallet. This enables SmartLending to be interest-free. After repayment the baseline value is returned to the backing pool of the respective SmartDeFi token.
What Does This Mean? SmartLending means that you can now have access to your SmartDeFi token's baseline value without having to sell it. This is perfect for life emergencies or helping take advantage of buying into the launch of a new token without having to sell your assets. This means you have freedom and can treat your baseline value as a banked asset.
How Safe Is It? SmartLend requires no oracles, as the price comes directly from the baseline value pulled from the smart contract. Furthermore, as SmartLend requires no third party, there is no room for external manipulation or exploits of the code. SmartLend is the first lending protocol where the funds and data for ratio calculations are hosted inside the same place, making it the most secure lending protocol ever created. Is there a tax for lending a SmartDeFi Token? If a SmartDeFi ™ Token has a reflection tax, lending against it WILL cause that reflection tax to be deducted.
Why does the token not show in the wallet after a loan is taken? The system holds the user's token in the Smart Contract as collateral while lending out the baseline value irom asset backing as a loan. For example, if asset backing is in WBNB, landing SmartDeFi tokens will provide loan in WBNB.
Do tokens inside SmartLend receive reflections (if the token is RFI)? No, they do not. Once a token is used as collateral for a SmartLend loan, the SD tokens do not receive reflections while being held inside the Smart Contract. Once a user repays their loan in full, the token is given back to the user in their wallet (outside of the Smart Contract), and it will begin again to receive reflections (if the token is reflective (RFI).
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