The project has been nicknamed ‘DeLoan’, which stands for a decentralized borrowing platform.
The usage of cryptocurrencies to solve mainstream problems has been seen as the mark for digital assets adoption. Tron, the Justin Sun led cryptocurrency is known for its involvement in the application sector and recently they added another feather to its cap.
On January 20, the Tron Foundation announced that the TRX mortgage lending platform was finally available on Tron’s Nile Testnet. The announcement was intended to show the Tronics that developments were in full swing.
The lending platform will be available for public release only after its public test has been completed. The project has been nicknamed ‘DeLoan’, which stands for a decentralized borrowing platform. Tron announced that the lending platform will be using its own stablecoin tentatively called the CRD.
According to Tron, the lending platform will allow users to obtain dollar like stablecoins by mortgaging TRX. Generally, if a user needs to obtain stablecoins or any form of cryptocurrrency, they usually have to trade their TRX directly. DeLoan aims to put a stop to this by using tokens such as the CRD and DLN. The project was also mentioned in Tron’s latest Medium release, which stated:
“DeLoan is a decentralized TRX mortgage platform on TRON. Through this loan platform, users can lend stable currency CRD by mortgaged TRX assets.The role of CRD is similar to USDT, except that the generation method is decentralized. The price of CRD is also softly anchored to 1 USD, the same as USDT. In the future, CRD can also be used to purchase other currencies such as BTC and ETH.”
Sun claimed that with the addition of the DeLoan platform, users will be able to experience a more wholesome cryptocurrency ecosystem. The Foundation was confident that the new lending platform will increase the “richness” of Tron ecology. The organization has warned users that the current version, which is only supported for PC access, will be different from the ones in the future.
Tron has also given users the step by step guide to test the mortgage lending platform. DeLoan runs on the Nile Testnet with the full node at htttp://api.nileex.io. The current testnet product involved three parts: the CDP Portal, the Scan and the Vote parameter on the DeLoan ecological governance platform.
On the testnet website, users can enter the number of TRX to be mortgaged and the amount of CRDs to be generated. The Foundation stated that if the mortgage TRX price is less than 150 percent of the CRD price, the amount will be liquidated. Holders of the CRD tokens can use them to deposit, withdraw, pay back, or generate more of it.
This is the second update on the Tron Nile testnet in as many weeks. Justin Sun had earlier announced the launch of shielded transactions functions on Nile, after keeping it as a well guarded secret for some time. Shielded transaction functions were created to removed the details of all completed transactions automatically from the network. This was created to improve privacy within the entire Tron ecosystem.