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About SALT
Key Points
- SALT Lending is a blockchain-based lending platform that offers cryptocurrency-backed loans.
- The platform has a native token, SALT, which can be used to reduce interest rates and as secondary collateral.
- SALT was founded in 2016 by a group of Bitcoin enthusiasts and finance professionals.
- The company is regulated and licensed, with over 40 employees and advisors.
- SALT enables multi-collateral loans with fixed rates, flexible terms, and LTV ratio options.
- The platform has a unique feature that converts collateral assets to a stablecoin in the event of a margin call.
- SALT has a
About SALT: Empowering a New Era of Lending
Introducing SALT Lending (SALT): A Pioneering Blockchain-Backed Lending Platform
SALT Lending is a pioneering blockchain-based lending platform that provides users with cryptocurrency-backed loans. By depositing a combination of accepted tokens, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Dogecoin (DOGE), DASH (DASH), or SALT (SALT), users can receive a loan denominated in a fiat currency or stablecoin, leveraging their digital assets as collateral.
SALT Lending boasts a native token, aptly named SALT, which serves a dual purpose: it can be utilized to diminish interest rates on loans and function as supplementary collateral. Notably, SALT tokens can currently be redeemed at a value of $7.50, granting interest rate reductions on loans, although this policy and valuation are subject to revision.
Established in 2016, the company is operated by Salt Blockchain Inc., a for-profit entity, in conjunction with Salt Lending LLC and Salt Master Fund II, LLC – NMLS 1711910.
The Visionaries Behind SALT: Meet the Founders
In 2016, a collective of Bitcoin aficionados and finance experts in Denver, Colorado, founded SALT, driven by a vision to create a product that would empower users to leverage their cryptocurrency as collateral for a cash loan, all while maintaining ownership. By introducing asset-backed lending to the cryptocurrency landscape, SALT pioneered the concept of blockchain-backed loans, thereby offering digital asset holders a novel avenue for liquidity.
Fast-forward to the present day, and you’ll find a regulated and licensed entity that has evolved to develop not only innovative crypto-backed lending technology but also robust, insured, and institutional-grade crypto custody solutions, complemented by cutting-edge blockchain monitoring products. Today, SALT boasts a diverse team of over 40 core employees, technical developers, and advisors, each bringing a unique wealth of experience from various domains.
Unveiling the Unparalleled Attributes of SALT
As outlined in its whitepaper, SALT pioneered the concept of cryptocurrency-backed loans, effectively creating a novel lending market niche. The company operates under a robust regulatory framework, boasting an array of lending, collection, and loan servicing licenses.
SALT facilitates multi-collateral loans with fixed interest rates, flexible repayment terms, and a range of loan-to-value (LTV) ratio options. Borrowers can opt for payouts in either cash or stablecoin. Notably, prepayment penalties and bank-style origination fees are waived. The maximum LTV ratio spans from 30% to 70%, with interest rates varying according to the selected loan term and LTV. Additionally, the platform doubles as an insured cold storage wallet and is home to its proprietary SALT token, which users can utilize to reduce loan interest rates, among other benefits. SALT extends its lending services to individuals and institutional entities, including mining businesses and hedge funds, both domestically in the United States and internationally. The company prides itself on providing live customer support, dedicated client services, and top-tier compliance programs to cater to the diverse needs of its user base.
The SALT Platform was meticulously crafted with the inherent volatility of cryptocurrency and the paramount importance of wealth preservation in mind. In the event of a margin call, assets are seamlessly converted to a stablecoin, thereby circumventing liquidation, a distinctive feature that sets us apart in the lending space.
The process is straightforward:
- Upon reaching a forced liquidation loan-to-value (LTV) ratio, the SALT Platform innovatively converts a portion of the collateral assets into a stablecoin, thereby preserving the value of the collateral and preventing immediate sale of the assets.
- Once the loan’s health is restored, the borrower has the option to reconvert the collateral back to its original cryptocurrency form, such as BTC, ETH, LTC, and so on.
- This strategic approach presents users with an opportunity to capitalize on market rebounds, thereby not only safeguarding their wealth but also potentially increasing it.
The SALT Platform features a comprehensive loan health notification system, encompassing email, phone, text, and app alerts, compatible with both iOS and Android devices. While we generally adhere to a policy of notifying borrowers of margin deficiencies, the system may, without prior notice, liquidate or convert pledged assets to ensure the minimum maintenance requirements of the loan are met. This liquidation or conversion of pledged assets may have adverse tax implications. Therefore, SALT recommends that borrowers consult with their tax advisor to fully comprehend the consequences of pledging digital assets as loan collateral.
What Is the Circulating Supply of SALT (SALT) Coins?
SALT boasts a fixed token supply of 120 million, ensuring a scarce and coveted digital asset.
The native token of the SALT Lending platform is SALT, which serves a multitude of user-centric purposes and can be freely traded outside the platform.
SALT embarked on an initial coin offering (ICO) in 2017, during which the presale and crowdsale collectively absorbed approximately 67% of the token supply, while the remaining balance is currently held in treasury by SALT Blockchain Inc.
In September 2020, SALT incurred a $250,000 penalty and entered into a settlement agreement with the SEC, thereby resolving an investigation into its initial coin offering (ICO). As part of the settlement, SALT Blockchain Inc. consented to publicly register the SALT token as a security under Section 12(g) of the Securities Exchange Act of 1934, and to notify ICO purchasers of their entitlement to submit a claim for reimbursement of their consideration, among other stipulated terms.
The SALT Network’s Robust Security Framework: A Comprehensive Overview
The Salt Platform safeguards assets within insured cold storage, assuming responsibility for the security of its networks and user funds. Within the Salt Platform, keys are generated, stored, and transactions are signed offline, thereby drastically mitigating cyber security threats, as keys are never exposed to a network-connected device. The multi-signature security process ensures that no single entity can unilaterally transfer user funds. Key encryption and layers of distribution provide an additional layer of security, protecting user funds against both internal and external threats. The Salt Platform employs a robust custody framework, combining people, processes, and technology to ensure the safekeeping of cryptoassets.
Its native token, SALT, is an ERC-20 token minted on the Ethereum blockchain,
whereby all on-chain SALT transactions are validated and secured by the
Ethereum mainnet’s robust infrastructure. In a decentralized manner, miners
engage in a competitive process to add new blocks to the blockchain, and a
consensus among a majority of nodes within the network is required to validate
a record, thereby ensuring its posting.
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