Founded back in the year 2016, SALT was an initiative brought together by Bitcoin enthusiasts to provide solutions to cryptocurrency’s limits. They wanted to make masses realize that to pursue cryptocurrency there is no need to compromise on their regular lifestyle. An asset backed lending was brought into the crypto world by them so it the digital asset holders are provided with a new level of adaptability and flexibility.

The former CEO of SALT lending mentioned why the company was initially established. The traditional finance operations never valued cryptocurrency and there was this escalating range of problems for the crypto-asset holders. Disrupting the current market had become increasingly necessary. Hence the collateralized assets of SALT in exchange of cash loans came into being thus saving the holders from their problems. The platform is even adapting multiple blockchain which facilitates opportunity for global reach.

Today SALT is the only crypto-backed lending technology. It is also an extensible institutional-grade crypto custody. A world of more reliance towards digitalization to make money effective for the society is the SALT big dream. 

Salt is an acronym for Secured Automated Lending Technology. “A next generation lending platform for blockchain backed loans”, is what it believes it stands for. SALT is the lending platform where its members can put their blockchain assests as collateral. 

Blockchain is the ideal collateral according to SALT because of the inherent features that blockchain is known for. Blockchain is transparent and helps with efficient transfer, storage and liquidation. Moreover it is affordable as well as there are lower chances of fraud cases.

Through the SALT lending platform once the users buy salt they are ultimately buying membership as well. Salt is built on an ERC-20 smart contract. These smart contracts also enforce and execute on the terms of agreement with cryptographic code. The Ethereum must implement ERC-20 standard. This allows the smooth exchange of tokens. 

The member has a benefit of borrowing money from a wide range of lenders. The borrowers can put bitcoin, ether, ripple and other blockchain assets as collateral. This is a key for the borrower because salt lending does not just concentrate on the credit scores for you to be the member. Instead it is dependent on the value of the asset. This facilitates the process of quick approvals. 

Their website mentions that Salt keeps collateral assets safe in a “fully-audited, ultra-secure architecture during the life of the loan so members can borrow with confidence’

The interest charged on loans would be similar to what the traditional loans charge but here through SALT once the loan charge is paid off, you will get back your blockchain-backed assets back. 

A significant incentive is what lenders need to finance loans which are collateralized by blockchain assets. According to Bloomberg Technology, this means that “someone looking to tap $100,000 in cash would probably need to put up $200,000 in bitcoin as collateral, and pay 12 percent to 20 percent interest in a year.” 

When these rates are high they are very much similar to the rates that are available on other unsecured loans. In this platform it would be different only because of the collateral as now the borrowers can even borrow more.

The role of finance as a technology stack includes a bunch of different types deals and contracts as well. The foundation to this is currency. Then comes the debt and credit instruments which is where SALT plays a key role. A lot a deals can be implemented if the creation of debt and credit instruments is resolved.