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Decentralized (Built-in) Credit Offers On Bitshares Blockchain

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Feature Explorer / DeFi / Tech Deep Dives

Decentralized (Built-in) Credit Offers On Bitshares Blockchain

BitShares

By BitShares

Created 2 months ago, last updated 2 months ago
2 mins read
Decentralized (Built-in) Credit Offers On Bitshares Blockchain

BitShares Blockchain combines many decentralized built-in functions and features for credit offers; rather than having to rely on centralized lending platforms to lend or borrow crypto funds, you can easily use the Bitshares Blockchain credit offer functions and features to significantly reduce counterparty risk as a borrower or a lender.

BitShares Blockchain users can see the terms of credit offers provided by lenders, including the backing collaterals required for accepting terms of lenders credit offers.

So say a borrower's plans for paying back their credit offer fall through, the lender is immediately made the owner of the accepted credit offer's offered backing collaterals.

Compare this to some of the centralized lending platforms, lenders were making a large % APR without knowledge of the underlying risky bets and the divvying up of collateral to creditors is slow or non-existent.

So with more transparency over BitShares Blockchain and an immediate decentralized resolution to non-resolved credit offers, Bitshares is a leading technology when it comes to how the underlying decentralized technology works.

Lending crypto

You set all the rules in your proposed credit offer, even if they're unlikely to be accepted.

Info you'll need to configure:

  • A quantity of assets which creditors can borrow (1 type per credit offer)
  • Accepted collateral asset
  • Repayment rate & repayment duration
  • Minimum borrowable amount
  • An expiration date for the credit offer
  • Optional: Limit participants

Fees needed for creating credit offers are very competitive compared to other Blockchains, currently costing 0.4826 BTS (less than half an USD cent).

Borrowing crypto

If you have collateral you wish to borrow crypto assets against in a decentralized manner, the Bitshares DEX's credit offer mechanism is for you!

Check out the credit offer page: https://bts.exchange/#/credit-offer

This page lists all current credit offers available to accept, if a credit offer you were expecting is missing you'll need to reach out to others in the Bitshares community to make this credit offer.

So if one of the credit offers interests you, once you click on the loan button you'll see a prompt like the following:

Within the prompt you specify how much you want to borrow, and it'll inform you of the required collateral which will be forfeit if you fail to repay the loan with the additional fee by the end of the repayment period.

For More Information

Official GitHub Website: https://bitshares.github.io
Official GitHub Repositories: https://github.com/bitshares
Official Telegram Group: https://t.me/BitSharesGroup
Official Development Telegram Group: https://t.me/BitSharesDEV
BitShares Reference Wallet: https://bts.exchange

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