Idea and Token
Simply said, Lendroid is a decentralized asset management platform, implemented on smart contracts. Minimum of intermediaries, commissions and risks of fraud. And the last one is not what we are insured with.
The main actors in Lendroid are Lenders and Margine Traders. Lenders provide assets to traders in the form of loans under percent. Traders select a profitable loan with a minimum interest and work with this money on the stock exchange. In order for a trader not to be tempted for risking credit, there must be provided the loan taken with an adequate amount of collateral. In case a trader cannot repay a loan, the missing part will be automatically extinguished from his pledge. In case everything goes well, the trader returns the taken loan with percent has his credit and everything he earned back. The partnerships are regulated by smart contracts and do not depend on people.
An important role in the platform is performed by two additional categories of participants: Wranglers (they represent the interests of creditors and monitor the accounts of traders) and Relayers (help traders to select the most profitable offers from the loan pool).
The economy of Lendroid is built around the utility-token LST (ERC20). By means of LST creditors and traders pay to Relayers and Wranglers. In addition, a part of LST is paid in the form of a commission for the platform development and its maintenance.
Not a clear point at all. In case you choose to trust the website – the project is performed by a mature team made up of people who are rally far away from each other (Canada, Estonia, India). That is normal for mature companies that are attracting outsource resources, but somewhat strange for a young start-up. Seeking through LinkedIn profiles, we could not find the team previous experience.
The project leader (Vignesh Sundaresan), as said in his LinkedIn, has a specialized knowledge in the field of trading. Attention here! There are not-that-happy facts of his biography and a scam-story with the project Coins-E we found on web. We do not possess with all the facts and do not blame anyone, just pay your attention to this.
The conception of trust management of assets is not new. However, the way to implement a protocol based on 0x protocol and decentralized architecture managed by smart contracts, gives the Lendroid project an advantage over classical solutions. First, this is the minimum size of commissions (the work of smart contracts is objectively cheaper than people’s work). Secondly, the problems of mutual trust and security are solved (the responsibility of the parties is clearly described, the human factor is minimized, the actions of traders are transparent and controlled).
Lendroid idea looks fine. However, the product is currently not available. According to Roadmap, it will take years to see it. In addition, we still do have questions concerning the team. Moreover, we inform either Lendroid developers or our readers about the major misprints in white paper.
Please be careful!