What is Salt?

Sep 13, 2022
4 min read

This blog post will cover:

  • What is Salt?
  • Where did Salt come from?
  • What are the advantages of Salt?
  • What are the disadvantages of Salt?
  • How to buy Salt on SimpleSwap?

What is Salt?

SALT is a native token of SALT Lending. The SALT acronym stands for Secured Automated Lending Technology. It is a platform based on Ethereum blockchain technology that allows people to take loans backed by cryptocurrency. This means that customers can deposit some amount of crypto to get a loan in the form of fiat money. In this case, cryptocurrency plays the role of collateral. The platform provides business loans as well as personal loans.
The main peculiarity of this project is that users do not have to sell their cryptocurrencies to get a loan, they are used as a collateral. Crypto assets are held on the service until the moment when users return the loan and then they are able to get crypto back, the amount of loan is changing with the price of collateral crypto. The minimum loan equals $5000 and can be used at the discretion of a borrower.
To become a member of a platform and to get a chance to take loans users need to buy SALT tokens. A type of membership depends on the number of SALT tokens bought:

  • Base (1 SALT/year)
  • Premier (10 SALT/year)
  • Enterprise (100 SALT/year)

If the request for the loan is approved, borrowers send crypto to a collateral wallet and get their loan transferred to their bank account.

Where did Salt come from?

The platform was founded in 2016 by a group of Bitcoin enthusiasts, as the team describes themselves on the official website. Their aim was to show crypto holders a wider perspective on how they can use their assets.
At the beginning, the head of the team was Shawn Owen. He has experience as an entrepreneur. However, he left the company in 2018. The other notable person in the SALT team is Erik Voorhees, a former founder and CEO of the ShapeShift crypto project. The team of SALT is growing and now it has more than 40 people.

What are the advantages of Salt?

SALT Lending was one of the first companies that started to provide a crypto loan service. Now they have a number of competitive advantages:

  • Borrowing money with crypto assets
    This is the most significant feature of a platform.
  • No need to sell owned crypto assets
    Borrowers only deposit their crypto assets for a lifetime of a loan.
  • Easy to use
    On the official website users can find all the necessary instructions on how the platform works. Plus there are all sorts of notifications to make the monitoring process more comfortable.

What are the disadvantages of Salt?

Even though the idea of using crypto assets to get a loan sounds very attractive, there are some moments that should be considered before using the service:

  • Crypto prices volatility
    It is a well-known fact that cryptocurrencies’ prices are fluctuating. Thus the difference should be corrected. If the price of collateral changes dramatically, the platform may stabilize it by changing it into stablecoins for a lifetime of the loan.
  • Minimum loan amount
    As it was said above the platform has the minimum customers can borrow, it is no less than $5000.
  • High repayment rate
    The average repayment rate on the SALT platform is higher than in the traditional bank.

How to buy Salt on SimpleSwap?

If you have decided to start using SALT Lending, you need to purchase its tokens. SimpleSwap is happy to help you, please, follow the instructions below:

  • Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
  • Select SALT in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
  • Enter the Recipient's Address. SALT will be sent to this address. Be careful and make sure you use the correct address.
  • Check all the information you have entered. If everything is correct click the Exchange button.
  • You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange

Thank you for choosing SimpleSwap!

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