“We plan to use open API to expand globally throughout Asia, Europe and the US” — CEO James Jung
As the cryptocurrency market has grown to ₩320 trillion (appr. $2.8 billion), the crypto finance market is also growing simultaneously.
Soon, Delio will launch decentralized cryptocurrency loan service, Deliolending, as opposed to existing services by the banks and securities firms with centralized real estate or stocks as collateral. Crypto loans use crypto or fiat currencies as collaterals like real estate mortgages.
In particular, the demand for cryptocurrency loans has greatly increased due to the advantage of being able to generate profit from leveraged investments while possessing crypto such as Delio, Bitcoin and Ethereum. In a bull market, where cryptocurrency prices are rising, it is better to use crypto loans and hold rather than to sell.
In addition, individuals have come to seek arbitrage that provides higher returns compared to the loan interest rate.
In the US, Europe and other countries, crypto loan services like Compound, Huobi, NEXO, dYdX, Genesis Capital, Unchained Capital, MakerDAO, Block Pie ( BlockFi) and VELIC are currently leading global Defi (decentralized finance) industry.
Deliolending’s BM includes an exchange-based crypto loan services. The user with a exchange wallet can request loans to Delio with the cryptocurrency held in the wallet. Delio asks the exchange server to check the presence of collateral and approves the loan request.
Users can receive a certain amount of the collateral in cryptocurrency or cash via their exchange wallet or bank account depending on their choices.
After the loan is executed, the loan user pays a monthly handling fee (interest) on the cryptocurrency loan. If the price of cryptocurrency falls or the user withdraws the cryptocurrency from the wallet and the cryptocurrency held in the wallet drops below 110% of the loan, Delio pays off the collateral and recovers the loan.
Participants have many benefits in exchange-based cryptocurrency lending services.
Users can secure their loans conveniently and quickly with collateral to increase their liquidity and profitability.
Exchanges increase their trading fees as their cryptocurrency volume increases. In addition, the increase in new subscribers who become new members of the exchange to obtain loan services can be seen.
Investors who lend loan funds to Delio can achieve a stable return on investment while minimizing the risk of loss of principal. Delio may also take a portion of the loan handling fee as revenue. In this way, Deliolending is a structure in which all service participants win-win.
“We are more secure and simpler than other cryptocurrency lending services because it is a method of real-time transfer of cryptocurrency to the user’s exchange wallet. We plan to expand our service area to Asia, Europe and the US through the open API. ” Delio loan services are provided by B2C loans and B2B loans.
B2C loans for individuals can secure their own cryptocurrency and apply for a loan through a wallet or deliolending platform. At this time, the cryptocurrency entrusted as collateral is directly managed by Delio.
Exchange-based B2B loans are secured by cryptocurrency or fiat currency with the cryptocurrency held on the exchange when the user applies for the delio loan service. In the case of B2B loans, if the price of the cryptocurrency falls on the exchange, it is designed to automatically transfer the cryptocurrency to the exchange wallet before the principal loss.
It is easy to understand the counter-trade in stock loans. The term of a B2B mortgage is three months and can be automatically extended upon expiration.
“The cryptocurrency mortgage market is growing rapidly and the global market is expected to reach 10 trillion won by 2020. “Delio Funding will grow rapidly in the cryptocurrency sector with high funding power, reliability and stability.”
[Originally written in e-patentnews, “[특허&CEO] 델리오, 암호화폐 담보 대출 급성장 예고” by reporter Sungyong Lee on Oct. 22, 2019 http://www.e-patentnews.com/6185
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