Helio Lending

 Alex Mashinsky, the founder and chief executive of the crypto lending platform, Celsius Network, recently announced a change concerning Dogecoin. He speculates that it will transition from a proof-of-work (PoW) protocol to proof-of-stake (PoS) within the next two years. Switching protocols means different features and abilities for the system.   For those who are not particularly savvy to these protocols, you may be wondering what makes them distinct from one another. On top of that, you want some context for this lending platform’s potential transition.   Proof-of-Work   Proof-of-work refers to a system that needs an insignificant yet feasible amount of effort to avert any malicious or trivial uses of computing power. Examples include sending spam emails or launching various attacks, like denial-of-service (DoS). PoW creates the basis of Bitcoin, as well as many other cryptocurrencies, which enables a consensus that is secure and decentralized.   The best way ...

  The topic of student loans is lengthy ground to cover. Among the various facets of these types of loans is the debate between subsidized and unsubsidized. Which one should a student choose? Which one will prove to be more beneficial in the long run?   When choosing a student loan to help you pay for college, the type you decide to take out — whether it be subsidized or unsubsidized — will impact how much you owe after you graduate. Therefore, understanding the differences between the two is important as it will help you determine which is more suitable for you.   Exhibit A: Subsidized   Subsidized loans are specifically for undergraduate students with financial need. It is determined by your attendance cost minus expected family contribution and other types of financial aid. Such examples include scholarships and/or grants. These loans do not accumulate interest during deferment periods or while you are in school half-time at a minimum.   If you qualify for a ...

One of the most important aspects of taking out a loan is understanding the terms and conditions. They establish what the parties are agreeing to and what each side’s responsibilities are. You must know what you are getting yourself into so that you can either agree or reject what is being offered.   Understanding the details   ‘Loan terms’ are the terms and conditions that pertain to borrowing money. This usually includes the repayment period of the loan, the fees and interest rate related to the loan, penalty fees that borrowers might be charged, and any other specific conditions that may be relevant.   Carefully reviewing loan terms is vital for comprehending your obligations when it comes to taking out a loan. First and foremost, you need to understand what your obligations are relating to making the loan payments. For example, if the due date of your loan payment is on a specific date on a monthly basis, you need to know that if you want to avoid late payments and p...

  There are four basic financial statements: income statements, cash flow statements, statements of retained earnings, and – the topic of this article – balance sheets.   What is its purpose?   A “balance sheet” acts as a statement of a business’s financial position that primarily lists the assets, liabilities, and owners’ equity at a specific point in time. Put simply, the purpose of a balance sheet is to illustrate the net worth of a business.   These sheets aid business stakeholders and analysts in evaluating the financial position of a company, as well as its ability to pay for its needs of operation. One can also use a balance sheet to figure out how they can meet their financial obligations. Moreover, they can help determine the best ways to use credit to finance certain operations.   The balance sheet may possess details from previous years, which will allow you to conduct back-to-back comparisons. This data will provide assistance in tracking your perfor...

  What are Liquidity Pools?   With the explosion of DeFi projects comes new ways of managing, handling, and storing money. One method that decentralized tools use to do this is via liquidity pools. These are a revolutionary and deeply significant technology that has allowed for DeFi to flourish over the last few years.   Introduction to Liquidity Pools   Liquidity pools are relatively new tech, being popularised by Uniswap; perhaps the most famous decentralized exchange on the market. Essentially liquidity pools are smart contracts that hold large quantities of funds within one location, that allow traders or borrowers to take from that pool. They help decentralized exchanges and loan providers to connect individuals with the money they are looking to work with.   People hand their coins and tokens over to liquidity pools in exchange for an incentive of some sort (with different projects offering different incentives). These funds are then used to help make trad...

  A loan covenant illustrates an agreement specifying the terms and conditions of loan policies between a lender and a borrower. The agreement provides lenders with some leeway in granting loans while at the same time protecting their lending position. Likewise, due to the regulations’ transparency, borrowers receive the straightforward expectations of the lenders. A violation of a covenant will normally lead to a default on the loan being declared, the loan being called, or other penalties being applied. The loan agreement’s legal provision for the loan to be “called” is known as the “Acceleration Clause.” It illustrates that when the buyer defaults, all future payments due under the loan are essentially accelerated and considered to be payable right away. The three types There are three types of agreements in loan covenants: affirmative loan covenants, negative loan covenants, and financial loan covenants. Affirmative loan covenants are reminders to borrowers that they need to ...

 In the financial industry, be it taxes, investments , or loans, a term that is periodically tossed around is “write-off.” We often hear this in the context of taxes (ex. “You will even get a tax write-off!”), but some are not familiar with what it actually means. What does it mean?  When an investment, like a loan, becomes delinquent (i.e. payments are late) or in default and is deemed uncollectible, the lender has a choice to make concerning the outstanding investment amount. They can either charge it as an expense or a loss. It is an accounting action that diminishes an asset’s value while simultaneously debiting a liabilities account. It is commonly used by businesses looking to account for unpaid receivables, unpaid loan obligations, or losses on stored inventory. Generally speaking, it can be seen as something to help decrease an annual tax bill.  The core idea is to use the money in conducting business, which was initially put aside at the time of lending the mon...

  “What is a Recourse Loan?”   For borrowers, one type of loan they can acquire is a secured facility. This is a debt that requires collateral, which is an asset that a borrower puts down as security. The lender can seize this asset and sell it to placate the debt should the borrower default. From here, a recourse loan comes into play.   What is it?   A “recourse loan” refers to a type of loan that assists a lender in recouping their investment. Specifically, if a borrower doesn’t pay and the underlying asset’s value does not cover it. The best way to describe a recourse loan is it’s a form of secured financing. It allows the lender to pursue the debtor’s other assets that were not used as loan collateral. Alternatively, the lender can take legal action in the event of a default in order to fully pay off the debt.   A recourse loan is a secured debt typically found in real estate and automobile loans. They provide lenders with substantial power due to having few...