The new platform generates non-expendable tokens ERC-721 to enforce payment times
The Cryptocurrency loan firm Dharma Labs, based in San Francisco, which allows cryptocurrency loans through the Ethereum network, announced this April 8th that it launched its service to the public.
After several months of testing, this system is already working and uses smart contracts to establish the conditions of the loans that are made between the users, who can take or give credits in ETH or DAI.
In this way, the initiative seeks to take advantage of the benefits offered by smart contracts, in order to achieve a credit system without intermediaries.
The digital currencies that users can use in this platform are ETH and DAI; the cryptocurrency anchored to the Maker dollar that, in recent weeks, has had problems maintaining its parity with the US currency.
According to the announcement of the launch, users can use the service with any wallet, although only Ethereum (ETH) and decentralized stablecoin (DAI) are compatible at the moment. The service is not custodial and users maintain control of private keys that grant access to assets.
Recognition of Cryptoactives
The loan, as it is explained in the white paper, is registered in an ERC-721 non-fungible token, although it can be transferred to other addresses. In these cases, the payment will be made automatically to the address of the last holder.
The process to enforce payment times is simple. The user must block a part of their cryptoactives in a type of contract called escrow. This deposit is not made to an address of the developers, but is blocked using the Dharma Key system.
About sending funds, this can be done from any keychain without the need to use MetaMask or any other interface that connects with the Ethereum network.
As it is detailed in the publication, Dharma has an advantage over centralized cryptocurrency escrow exchanges, which can sustain losses of client funds in the case of a hack.
The announcement states that the system allows users to authorize transactions whilst retaining control of their private keys through a four-digit pin. The service’s website explains that users can earn 2.5% annual interest in ETH and 8% in DAI.
The official website adds that, so far, more than USD 1 million have been borrowed from the platform, whilst more than USD 1.6 million have been offered.
A report by the cryptocurrency lending company Genesis Global Trading said in January that USD 1.114 billion in loans and credits were processed last year. The crypto world continues to expand.
By María Victoria Rodríguez