NEST is a decentralized financial (DeFi) service ecosystem. At present, NEST DAPP has launched the decentralized digital asset mortgage lending business. This article mainly introduces the business in detail, so that everyone can have a comprehensive understanding of NEST products and quickly get started.
NEST DAPP supports mutual mortgage lending between mainstream Ethereum assets such as ETH, USDT, MKR, DAI, TUSD, HT, BAT, OMG, and LOOM. It adopts the mechanism of “chain contract” + “excess mortgage” + “no need to make up the position” to realize the decentralization and point-to-point mortgage lending service of digital assets in the true sense.
The specific process is as follows:
1. As a debit, you need to deploy a mortgage lending contract with parameters: borrowing 10 ETH, borrowing period 30 days, daily interest rate 0.1‰, mortgage asset selection HT.
2. Then, based on a 40% mortgage rate, you need to lock the HT with a value of 25 ETH into a smart contract (mortgage loan contract) for mortgage.
3. After the transfer to the mortgaged asset was successful, the mortgage loan contract was successfully issued and could be invested by the lender. At this point, you can post the loan contract to the contract market. After the loan is invested, you will receive 9.9 ETH (0.1 ETH fee will be systematically deducted), after which you can exchange ETH for US dollars or invest in other assets.
4. You need to repay 10 ETH and very low interest (0.1 day interest rate) before the repayment date. After the repayment is successful, you will automatically receive the mortgaged asset (HT) that was previously locked into the smart contract. At this point, this single loan contract is over.
5. If you fail to repay the loan within the time limit, you will lose the right to retrieve the mortgaged assets and your mortgage assets (HT) will be taken away by the lender. Then, the loan contract list ends here.
You may ask: What guarantees that the borrower will not default?
Because the mortgage assets on the NEST platform are always over-collateralized, that is to say, there is a full amount of mortgage assets (2.5 times of mortgage assets) at the beginning of each loan contract.
You may ask again: How does NEST achieve decentralization?
The NEST platform is not limited by the influence of a centralized organization. Each mortgage loan generates a chain contract. There is no risk of centralized hosting. Even the NEST development team cannot tamper with and transfer the user's mortgage assets.