-
Notifications
You must be signed in to change notification settings - Fork 42
What are the Fees and Costs?
Currently, ETHLend does not charge the borrower upon placing a loan request.
We charge 0.01 ETH for funding a loan request.
Currently there is more liquidity available than borrowers, therefore we are keeping the fee as it is.
Since ETHLend is decentralized application (DAPP), it means that all transactions are transparently broadcasted on the Ethereum network. This means that upon each transaction GAS costs are exhausted from 1 USD worth of Ethereum to 30 USD worth of Ethereum (the latter is only when loan request is placed, see below).
Currently, the DAPP is build in a way that we have a ledger smart contract which creates upon every new loan request a new smart contract. This ensures more security. Therefore, borrower's are not sending collateral tokens to a common smart contract. Instead, each loan agreement smart contract handles that specific tokens and ETH transactions. This solution will proves more security, but however, eliminates smaller loans (under 0.5 ETH) since the gas for placing a loan request takes around 30 USD worth of ETH.
On USD-pegged loans, a USD/ETH rate must be called. We use Oraclize, which charges 0.05 ETH fee. The fee is high, however the parties can trust that the rate is correct.