An overview of Bloqboard

What is Bloqboard?

Bloqboard is a digital asset lending platform. Bloqboard provides users the ability to borrow and lend assets, and have their transactions settled on the Ethereum blockchain. Our solutions are designed for crypto funds, asset managers, users of digital wallets, trading platforms, exchanges, customers of custodians and anyone who would like to borrow and lend assets. Users can borrow and lend directly from their wallets, without ever needing to trust Bloqboard with the custody of their assets, thanks to the Ethereum blockchain, as well as Dharma and Compound, two leading open lending protocols.

Why would I want to use Bloqboard?

Lenders

Imagine you’re an asset holder — whether a retail investor or institutional firm like a crypto hedge fund — and you’re sitting on ETH or other major ERC-20 tokens because you believe in the long-term upside. Bloqboard provides you with an opportunity to retain those assets and earn interest on them for the given period that they are loaned out.

Value proposition: lenders would use Bloqboard and liquidity pool loans to “park” their assets and earn the prevailing market rate on their holdings until they see a more attractive opportunity with lending peer-to-peer. It also works vice versa — proceeds from repaid peer-to-peer loans can be “parked” in liquidity pool loans. Bloqboard aims to engineer non-custodial lending use cases on decentralized finance protocols with the goal of providing a superior user experience.

Borrowers

For borrowers, Bloqboard provides the ability to margin fund trades and take advantage of short selling opportunities. Borrowers that are long a particular digital asset, say ETH, could use that as collateral to borrow other assets that they want to short or exchange it for more ETH to leverage their fposition. After completing the short, the borrower would return the borrowed assets and receive their collateral, in this case, ETH. 

API

We have made our API available to power your trading platforms and bots with lending and borrowing capabilities. Our API can be used to integrate with exchanges, trading platforms, and other financial applications. If you would like access, reach out to us at contact@bloqboard.com

How does it work?

Borrowers can request a loan either peer-to-peer or from a liquidity pool.

By borrowing and lending peer-to-peer, both counterparties commit to predefined terms including interest rate and loan duration. By borrowing and lending with a liquidity pool, both counterparties commit to a loan with a floating interest rate and no fixed maturity date. At the moment, Bloqboard supports BAT, DAI, REP, WETH and ZRX.

Borrowing Peer-to-Peer

By borrowing peer-to-peer, a user specifies the following parameters:

  1. Interest rate

  2. Duration

  3. Principal asset (asset you want to borrow)

  4. Collateral (asset you want to secure the loan)

All loans are secured by ERC-20 tokens, so in the event that a borrower is unable to repay, the lender has the ability to seize the collateral locked in the smart contract. In the future, underwriters will emerge to originate debt orders from borrowers, negotiate terms for the debt, assess the likelihood a borrower defaults, ensure repayments and collect collateral in the case of delinquency (only if the collateral is off-chain).

Once a borrower has filled out a loan request, it will be submitted to the Bloqboard listing board. Afterward, lenders can select loans that they find attractive.

 

Lending Peer-to-peer

By lending peer-to-peer, a user specifies the following parameters:

  1. Interest rate

  2. Duration

  3. Principal asset (asset you want to borrow)

  4. Collateral (asset you want to secure the loan)

All loans are secured by ERC-20 tokens, so in the event that a borrower is unable to repay, the lender has the ability to seize the collateral locked in the smart contract. In the future, underwriters will emerge to originate debt orders from borrowers, negotiate terms for the debt, assess the likelihood a borrower defaults, ensure repayments and collect collateral in the case of delinquency (only if the collateral is off-chain).

Once a lender has filled out an offer to lend request, it will be submitted to the Bloqboard listing board. Afterward, borrowers can select loans that they find attractive.


Borrowing and Lending with a Liquidity Pool


Borrowing and lending from a Compound liquidity pool are done instantly, without the need to specify the duration or interest rate. The borrower can repay the loan whenever they choose and the interest rate is determined by supply and demand.

It’s worth taking a moment to understand how both loan types compare. The table below provides a full comparison of the two types of loans that Bloqboard offers.


(*More to come)


Connecting to Bloqboard

Connecting to the Bloqboard dApp first requires MetaMask sign in. If you don’t already have MetaMask, you can download it as a browser extension for Chrome, Brave, Firefox, and Opera. You can also easily connect your Ledger or Trezor wallet to MetaMask and use your hardware wallet to sign in to Bloqboard. Alternatively, mobile users can access the dApp on iOS and Android via Coinbase Wallet and imToken. At the moment, only peer-to-peer loans are available on mobile devices.

A couple of things worth pointing out:

First, Ether (ETH), whether you’re using it to fill or collateralize a loan, must first be wrapped. “Wrapping” your ETH to WETH is a necessary first step in order to make it compatible with the ERC-20 token standard.

Second, if a transaction is taking a long time to confirm in your MetaMask wallet, you can try increasing the gas price slightly.


Still have a question? Reach out to us in our Telegram group or at support@bloqboard.com.