Helio Lending

  The crypto industry is immensely volatile. This is due to both its infancy, and its influx of retail investors. While volatility can be favorable to some (such as day-traders), most people find it uncomfortable and worrisome. As a means of curbing this, developers created coins and tokens that are tied to certain values, allowing for steadiness and peace of mind. There are two main categories of coins that achieve this: stablecoins and elastic supply coins.   Both are designed to be significantly more predictable, and for this reason, they make for fantastic forms of collateral when getting crypto-backed loans. On the surface, they can even seem very similar to each other, but the technology and economic principles behind them are wildly different. So which is the better collateral: stablecoins, or elastic supply coins?   Stablecoins use reserves   Stablecoins, such as Tether, TrueUSD, and Dai, keep their assets at consistent prices by using reserves of fiat money...

  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...

  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 w...

  The NFT collectible market is one of the biggest NFT sectors. Projects like CryptoKitties and CryptoPunks have led the charge for raising awareness of NFTs, and during their short existence, they have been valued at millions of dollars and been used as collateral for countless loans. With such a lucrative (albeit tiny) history, many are looking to enter the market, but are apprehensive about whether the industry can sustain itself, or whether it will collapse.   This is an especially salient fear for those who are considering using NFT collectibles as collateral in the future, as a depreciating market is no good for borrowers. Lucky for them, the NFT collectible sector is largely different from other markets, with distinct aspects that suggest a lucrative and fruitful future. Let’s take a look at these aspects.   The Human Desire for Collecting   Humans have been collecting for as long as we’ve existed as a species. Chances are, you know somebody who collects thing...

  It may come as a surprise, but privacy coins such as Monero or PIVX can be used as collateral to attain a crypto loan. Privacy coins are a controversial part of the industry, to say the least. With governments shunning them, and many crypto exchanges delisting them, people are often left assuming that their privacy coins are unaccepted everywhere. But this is simply not true.   What exactly are privacy coins?   Privacy coins are cryptocurrencies which hide the activity happening on their distributed ledgers. Unlike with other cryptocurrencies, where anybody can take a peek into somebody else’s financial activity, privacy coins limit who can see what activity. For instance, if you send money via Monero to somebody else, then only you and the other person are given knowledge of this trade. Additionally, nobody can see the contents of your wallet.   Most cryptocurrencies have some elements of anonymity, such as not having your name attached to your wallet, but with ...

  Personal debt is experiencing a surge, particularly with Millennials and Generation Z. Having grown up in an environment where online services are prominent, using cryptocurrencies is as dominant today as using credit cards once was. Digital investing is a popular trend among Gen Zers and Millennials, which is helping to accelerate the interest in digital currencies.   Because of this, younger generations are looking to see if crypto-backed loans can help them manage their finances and settle debt. Moreover, they want to do this without needing to sell off their crypto holdings. One such debt type is the maligned student loans.   Debt repayment via crypto assets   A core trait of the aforementioned generations is their knowledge of and interest in digital products and services. This affinity extends to cryptocurrencies. What pushes these groups closer to leveraging their crypto-assets is the combination of continuous debt, an unclear future, and the open-mindedness...

H andling, 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 trades or issue loans. The money people hand is not exactly lost, because a fully functioning liquidity poo...

When you borrow money, it is not income for tax purposes because you have to pay it back. When you lend money, you get no tax deduction or other taxable event. You just changed your money into a promise that the borrower will pay you back. So, to the IRS not much has happened. Sure, there may be interest paid or interest received. Plus, if you are relieved of the obligation to pay back a loan, that is income in the amount of the debt forgiven. Mostly, though, loans can be neutral from a tax viewpoint. How about loans in Bitcoin or other digital currency? Loans and taxes That’s not so clear. With loans in dollars, money is fungible. When you receive a loan in cash, the lender usually knows that you will invest or spend the money. Everyone understands that you will pay the lender back with other money. But the IRS says cryptocurrency is property. Say you lend your car to another person. If the borrower returns a different car, that transaction could be viewed as the sale of the original ...

  Decentralized finance (DeFi) is an alternative form of finance offered by cryptocurrency platforms where investors can access readily available liquidity pools. As a bonus, there is no involvement from third-party lending institutions. Understandably, its popularity has seen an admirable increase.   With over $60 billion in value attached to DeFi projects as of April 2021, it has truly become a phenomenon. The same can be said with cryptocurrency, having caught the attention of various investors since Bitcoin’s launch over a decade ago.   Although DeFi and cryptocurrency have potential, it also raises queries surrounding novel policy and regulations. Financial regulations typically adopt the presence of intermediaries. Moreover, it applies regulation to intermediaries to oversee financial markets and relevant activities. Consequently, DeFi may put regulators and policymakers alike in uncharted – not to mention hostile – territory.   Potential risks and adapting ...

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 popularized by Unsnap 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 trades or issue loans. The money people hand is not exactly lost, ...

  Home improvement projects are as costly as they are ambitious . While putting thought into the design of the house is important, it is the amount of money the process will cost that is a lingering factor that cannot be ignored. Many homeowners find it difficult to fund home improvement projects that could potentially boost their living standards due to being stuck with their properties’ low liquidity. Applying for various types of bank loans typically involves credit checks and receiving approval can take a long time. Put simply, this whole endeavour to improve one’s house can be taxing.   However, the crypto-asset lending platform , Pledge, has recently made steps towards simplifying the process. By collaborating with construction estimate and management platform, 247PRO, Pledge plans to offer crypto-holders among homeowners easy access to loans for home improvement they can take against their digital coins.   What the partnership will provide   In contrast to mos...

  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 fewer limits on what lenders can pursue f...

  “What is the Grace Period?”   When discussing student loans, the chances of the grace period being brought up are quite high. Along with deferment periods, this particular stretch of time is something to be aware of in regards to loans and payments.   What does it entail?   A “ grace period ” is an established length of time following the due date during which the payment can be made without penalty. These periods – usually lasting 15 days – are often included in contracts for mortgage loans and insurance. Additionally, they allow a borrower or insurance customer to stall the payment for a short time after the due date.   During this period, there are no late fees charged. Moreover, the delay is unable to lead to loan default or contract cancellation. Payments beyond the due date but during the grace period do not result in a black mark being attached to the borrower’s credit report.   When it comes to defining a grace period on a loan, most credit card...