Could blockchain technology and DeFi be the key to ending financial slavery? 

Decentralized Lending Network (DLN) has announced the launch of their novel concept for executing a no-fee, zero percent interest micro-loans network aimed at democratizing the traditional banking system by leveraging one’s social reputation as collateral. 

By putting one’s own reputation on the line, a backer collection decides to back a borrower’s proposal by providing the assets required for the borrower to receive the loan. 

DLN is on a mission to create a decentralized lending network protocol supported by a decentralized autonomous organization (DAO) that will allow micro-lending without any fees, interest or collateral from the borrower while still providing rewards to the backer through an innovative social staking contract.

The social staking contract allows the close friends of the borrower to take a chance on the borrower by backing the borrower proposal. It is this backing that de-risks the borrowing process and creates a Backed Collateral Debt Position (BCDP) that is enforced by the social relation between the backer and the borrower. 

Dr. Adel ElMessiry, Co-Founder of DLN, said, 

“Blockchain in its essence is by, and for the community, it has undergone two evolutions, the first was digital asset creation while the second is DeFi. Both fell short of addressing the needs of the global underbanked community.

“This is the vision for DLN-DAO, a decentralized autonomous organization created by and for the community with a mission to launch a decentralized financial network and flips traditional microloan industry on its head.”

AYO.NEWS says:

Undoubtedly one of the biggest problems with the global economy right now is that of accessing financial services. For those at the lower end of the economic strata, it’s far too easy to get essentially locked out of the mainstream banking system, and forced to turn to exploitative loan services – which in turn just trap people in ever worsening debt spirals. 

So, something like the DLN could find a huge and very receptive market, if it is allowed to succeed – because, for certain, there will be many with vested interests in the current system who won’t want to see this work. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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