Decentralized Finance (DeFi)
DeFi, through its underlying technology in Blockchain, is a collective term for financial products and services accessible to anyone who can use Ethereum with an internet connection. Through DeFi, the markets are always open, and there are no centralized authorities who can block payments or deny you access to anything. Services that were previously slow and at risk of human error are automatic and safer now that they’re handled by code that anyone can inspect and scrutinize.
There’s a booming crypto-economy out there, where you can lend, borrow, long/short, earn interest, and more. Companies have started streaming their employees their wages in real-time. Some folks have even taken out and paid off loans worth millions of dollars without the need for any personal identification. A concept that LandOrc follows through their LorcFinancing.
DeFi Lending
You can enlist your crypto coins on the DeFi lending platforms for lending purposes under P2P (peer to peer) lending. It’s a trustless system without intermediaries. A borrower will be able to take a loan on these platforms. As a lender, you will be able to earn interest through these lendings. There are many other decentralized applications (DApps), but DeFi seems to be the fans favourite.
DeFi’s features are unique with better performance compared to traditional money lending. It’s easier to access the DeFi platform for the money transfer process as it’s transparent and doesn’t involve any third party. The borrowing process is straightforward. All that the borrower needs to do is open an account on the DeFi platform, after doing all his or her due diligence, have a crypto wallet and open smart contracts. They will need to deposit crypto assets as collateral to borrow. They will receive their collateral once they have made their repayment within the stated time in the smart contract.
DeFi offers immutability, and no one gets any preferential treatment. Long-term investors take this opportunity to lend assets and earn higher interest rates. Users can also access fiat currency credit to borrow loans where the rates are lower than decentralized exchanges.
Imagine banks keep the money in their vault and never lend it to anyone. The money is not going to be put to good use. Similarly, when you keep crypto assets in your wallets, only the underlying value increases or decreases. Still, you are not going to get any interest. With DeFi lending platforms, one would be able to lend the crypto assets of their holding to earn some interest.
In the case of banks, they request collateral that is associated with some loans. For a house loan, the house itself becomes collateral. If the borrower fails to repay the loan or service it, the bank will seize the house and put it up for auction. In the decentralized system, the borrower should deposit a more valuable crypto asset than the loan amount.
LandOrc uniqueness
LandOrc is also a lending platform, but a unique one. They don’t do P2P lending that has already been flocked by many platforms. They lend to property developers through their very own LorcFinancing. A real estate developer needs funding for his project. He has got land to use as collateral. They can approach LorcFinancing, collateralize the land for a relatively lower borrowing rate and start working on their projects. LorcFinancing offers an opportunity to raise liquidity through the crypto ecosystem and lend it to the developers by holding their collateral. The developers will be lent around 50% of their collateral value.
How do you become a lender in this unique method that no one has ventured? You buy LORC tokens by LandOrc and stake them for a specified period for fixed returns of 15% to 20% through their smart contract. This staking process is the basic idea of how you would earn from LandOrc’s lending platform.
In the event of failure to pay back by the developers, LandOrc will sell their collateral to get back the loaned amount. No matter what would the scenario be, based on the smart contract, your returns are GUARANTEED! As LandOrc grows more prominent, you can imagine the number of land or property collaterals that they could potentially hold at their disposal.
We are looking at a unique way of lending by LandOrc.io that combines both on-chain and off-chain methods through blockchain technology. The detailed process has not been covered here. The reason is for you to understand how the LandOrc lending platform works for crypto lenders, in this case, through staking your LORC tokens. Tempting right? They are having their private sale now with three months vesting. You can buy your LORC tokens through https://landorc.io/private-sale.html
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