Borrow & Lend Stellar Assets
How to lend?
1) Find a loan application that is suitable for you. Ensure that the collateral is sufficient to cover your losses if the borrower fails to repay the loan.
If you haven't found the loan application, you can create a lend application. In that case, the borrowers will submit their loan applications to you. You'll receive a notification on your Telegram account when it happens.
2) Make an offer to the borrower by pressing the "New Offer" button on the loan application page.
3) Wait for the borrower to review and accept your offer. We created a Telegram bot that will notify you if the borrower accepts your offer.
4) Wait until the loan term ends to claim repayment or collateral if the borrower fails to repay the loan.
The website is down. Does this affect my loan(s)?
No. According to the contract, the borrower still has to repay the loan in time.
It's good to save the XDR for the repay & seize transactions somewhere safe. In that case, you'll be able to submit them to the network manually if needed.
What are my risks?
Even though we are talking about collateralized loans, there are some risks involved:
1) The collateral could be any asset on Stellar blockchain. You are, as a lender, responsible for verifying the value of the collateral. The value should be sufficient to recover the losses if the borrower fails to repay the loan.
2) The are no liquidations. If the borrower fails to repay the loan, you'll receive the collateral asset. You are responsible for selling/exchanging the collateral to recover your losses. So you have to keep in mind that the collateral could lose its value over the loan duration.
3) For some collateral assets, the asset issuer could clawback or freeze it.