Introducing Cobalt Lend, A Community Voted Lending
By: Moh Abdallah
Tags: Exchange, Bitcoin, Ethereum, Cobaltlend, Lending

Introducing Cobalt Lend, A Community Voted Lending

Cobalt is an asset lending ecosystem that is designed to bring loan seekers together into forming a decentralized voting system. This system aims at attracting loans ranging from micro loans to six figure loans without any financial institution or bank’s interference. The Cobalt Lend community profit from participating in the ecosystem, thereby the voting system is completely governed by the community.

Majority of the existing lending systems have some various lapses, but hopefully with the Cobalt Lend team’s committed effort towards a community voting system before approval of lending request from borrowers is already making a huge difference, especially with the recent successful funding of their first project, a marijuana project. Voting are hosted in a blockchain ecosystem, this makes the system purely decentralized and open for utilization by anyone from anywhere irrespective of race or individual background.

Cobalt lend Loan Request Requirements

The consideration when a project or an individual is requesting for a loan is based on the merit of the project or the individual and the collateral that they provided, and then it will be left for the community to decide on accepting the proposal or rejecting it through a voting system.

Although currently the lengths of loan phases are set by the Cobalt Lend foundation, it can swiftly be changed if voted for by the community. The system have the below list of loan phases based on collateral.

· 1ST Tier: Cover collateralized loans of 150%

· 2ND Tier: Cover collateralized loans of 130%

· 3RD Tier: Cover collateralized loans of 115%

· 4TH Tier: Cover collateralized loans of 100%

· 5TH Tier: Cover collateralized loans of 30–90%

Cobalt Lend Ecosystem’s Validators/Stakers

Validators are said to be a major players in the Cobalt Lend ecosystem and they are rewarded very handsomely. Validator’s compensation is design to be in two forms, these includes;

· Through the verification of transaction on the blockchain which attract transaction charges/fees that is being collected. Part of the fees goes to stakers/validators, part goes to the treasury while part is being burned, and

· Through dividend payout from the treasury. This is based on positive activities of the projects that have been funded via Cobalt lend community voting process.

Facts About Utilizing the Ecosystem

Going about requesting for funding either as an individual or as a start-up project, or picking interest on becoming one of the Cobalt Lend Node Validator/Staker, certain fact and knowledge needs to be taken into consideration, in this article I have highlighted these facts and they are stated below;

· Borrowers/Lenders will first of all submit their lending proposal to the community for voting.

· After submitting proposals to the community, lenders will go ahead and lock their collateral in smart contracts.

· The request will then be voted for by the community. The voting takes place within the Cobalt Lend wallet EPNS.

· If the request gets approved, the funds will be released to the lender. Else if the request gets declined, the smart contract will immediately return back the lender’s collateral.

· In case where the request gets approved, the lender receives CBLT token as incentive for successfully lending from the community.

· When lenders repay their loans, their collaterals are unlocked and returned back to them.

· Stakers/Validators receive huge part of the fee raised from verifying transactions in the ecosystem’s network. They also receive periodic bonus dividend from the treasury, this is strictly based on profit returns from the company.

· The treasury basically receives a portion of the fees generated from block verification by the validators, and also a portion of the fee will be burned from circulation.

· Note that the system is designed in the sense that the overall structure of the ecosystem which includes payout of dividends can be voted on and changed at any time by the community, truly decentralized.

The Governance Model

The Cobalt Lend protocol is designed in such a way that no single individual can have a total control of it, as the community oversee the management of the entire protocol through a decentralized voting system. Community members can easily leave the system without affecting the development of the platform or the community.

Role of Various Stakeholders in The Ecosystem

Every major stakeholder in the ecosystem has a strategic role to play. In case of borrowers, their role basically includes;

· Submitting proposal to the community.

· Locking collateral in smart contract while lending.

· Pay fees to treasury for execution of smart contract.

· Repay loans with interest to the treasury.

· Receive CBLT token as an incentive for borrow.

While in the case of stakers/validators, their role includes;

· They can vote on proposals from both borrowers and the foundation.

· They can vote for a seat in the foundation at any time.

· They can vote on the overall structure of the ecosystem.

· They can submit proposals to the foundation for voting.

· They receive the majority of fees that are generated from block validation.

And finally the founders whose set of role to play includes;

· Supporting the foundation and the community.

· Investing in other projects to diversify investment, all for the development of Cobalt Lend ecosystem.

Conclusion

The Cobalt Lend founders have an idea that although it’s not the first of its kind but with a key difference that brings more trust and credibility to both borrowers and lenders while leaving every party all happy after. Cobalt Lend idea is one that is aimed at upgrading the current lending ecosystem so as to allow average individuals to be part of the system with an expansion of the availability of all sizes of loans to masses.

Official Project Resources

Website: https://cobaltlend.com/

Whitepaper: https://secureservercdn.net/198.71.233.96/nkr.655.myftpupload.com/wp-content/uploads/2020/09/Cobalt-Lend-Lite-White-Paper-1.pdf

Telegram Community: https://t.me/cobaltlendgroup

Twitter Handle: https://twitter.com/CobaltLend

Facebook Page: https://www.facebook.com/cobalt.lend

Published by forum user: satsmainman

Forum profile: https://bitcointalk.org/index.php?action=profile;u=2863939