Decentralized Lending Network (DLN) today announced the launch of their novel concept for introducing a no-fee, zero percent interest micro-loan network aimed at democratizing the traditional banking system by leveraging blockchain and social staking.
DLN enables borrowers to post a loan proposal that is then backed by friends, family or other participants on the network who earn interest by staking assets and creating a backer collateralized debt position (BCDP).
It is this BCDP that de-risks the borrowing process allowing liquidity providers to fund the loans without any underwriting risk. The interest for liquidity providers, backers and to operate the network are generated by staking the BCDPs underlying pool of assets in high yield DeFi protocols, making loans 100% free for borrowers.
Dr. Adel ElMessiry, Co-Founder of DLN, said, “Blockchain in its essence is by, and for the community, it has undergone two evolutions, the first was digital asset creation while the second is DeFi. Both fell short of addressing the needs of the global underbanked community.”
The longstanding award-winning AI and blockchain academic and serial entrepreneur added, “This is the vision for DLN-DAO, a decentralized autonomous organization created by and for the community with a mission to launch a decentralized financial network and flips traditional microloan industry on its head.”
To read and contribute to the litepaper, or to learn more about DLN, please visit: https://www.dln.org.
About Decentralized Lending Network
DLN is a decentralized autonomous organization created by the community for the community with a mission to launch a decentralized financial network that enables free 0% interest microloans backed by social staking.