SALT stands for Secure Automated Lending Technology. It allows you to keep your cryptocurrency (bitcoin, ethereum & crypto) and borrow against it. SALT Lending holds the value of the cryptocurrency and borrow fiat currency (USD, YEN, EURO). This could change the world of lending.
You could borrow without having credit checks and proof of income. And the lender holds actual collateral. I hope it works. It is definitely a good idea, but there may be some drawbacks.
1. Cryptocurrency volatility. Since the value of cryptocurrency can go up and down so rapidly how can the lender and the borrower maintain the agreement? The borrower is supposed to make up the difference between the amount borrowed and the collateral if the crypto being held goes down.
2. State by State Regulations. Lending is regulated by each state so Saltlending will have to be authorized to act in each state.
3. Centralization. There are pros and cons to centralization. Pros: regulation requires it, faster decisions. Cons: easier to attack, governments can shut it down or apply restrictions in their areas, organizational greed.