The DeFi, Decentralized Finance, is being looked at as a scorching topic, and the one coin that is leading the arena around this concept is the Ethereum.
The project that has been able to drive this concept is the Fluidity, one that will be the very first to launch a mortgage that is Ethereum powered in both New York and California.
Fluidity will make drastic changes in the mortgage sector
The company was formed at the beginning of this year and with the incredible goals several shareholders have backed it, this is the likes of Mike Novogratz, Bill Tai, and Brock Pierce, individuals who have been considered to be crypto veterans.
The company will soon be launching during the summer, and it is speculated that it will benefit the Ethereum-ecosystem, this is according to Coindesk as they were able to receive some insider information. Todd Lippiatt, who is the chief architect of the company is eager about the stride the company is taking on.
“We’ll tokenize the house, which will effectively take the collateral that is the equity of the house. You’re pledging the house and you get an advanced rate back in terms of dollars.”
Mortgages backed by Ethereum
The upcoming mortgages from the company will be Ethereum powered; thus, they will use the Ethereum smart contracts together with the use of crypto coins for effective back end management.
The company is continuously exploring the lending platform that is within the Ethereum-ecosystem; they are looking at companies like MakerDAO’S a dollar pegged DAI loans. It is to ensure they get a better insight into the sector.
The company aims to ensure that neither the property seller or the borrower will be able to touch the crypto coins. All this will be left to the company as they will be working on the complex decentralized systems just to ensure the transactions run smoothly.
They have not forgotten the underbanked and the low-income borrowers within the industry. Especially those who have been able to pass the online credit check and have also been able to prove they will make the payments will also benefit. It is because the loans that have been created for the market are intended to be much cheaper than the current market rate.
The project […]