Digix was the first actor to have shown that it is possible to transform assets commonly used in the market in virtual currency. Specifically, tokenization is the conversion of a value in an active digital easily exchangeable. Virtual currencies/tokens virtual can represent a stock, a commodity or a real estate asset.
The principle of the token DGX is based on its convertibility with gold: a token representing a gram of gold stored in a vault under the control of a bailiff . Thus, the value of precious metal can instantly be transferred, exchanged or deposited into guaranteed without it being necessary to move the least amount of gold. This operation thus makes it possible to offer great flexibility to investors.
Moreover, contrary to most of the currencies of fingerprints present on the market, the value of which is essentially speculative, the underlying currency DGX is the price of gold. This currency can then be used as a store of value as stable as the gold itself, while enjoying the benefits of a currency digital.
ETHLend is a decentralised application running on the blockchain of the network Ethereum. ETHLend is a global market for credit, connecting lender and borrower in the world. The application allows you to loan secured through the use of token ERC-20 as a guarantee. Instead of sell and close the position, a borrower can easily place its tokens as collateral to obtain the ether. ETHLend is ideal for the owners of the token, which need liquidity to enlarge their portfolio, but also for all those who benefit from a market that is decentralized, where the terms and conditions of the loans are selected only by its participants.
ETHLend adds a function to bind to the loans in the Ether currency fiduciary to avoid volatility and allow for loan agreements understood by the greatest number, while maintaining all of the benefits that separate the technology blockchain the traditional banking system : Transactions are fast and without borders, and transparency for all parties, decentralization and security agreements self-executing, so-called “Smart Contracts”.
Today, Digix and ETHLend announce a mutual partnership that will create new use-cases and investment strategies for the holders of token DGX as well as a stable value and new functions for users of the platform ETHLend, whether individuals or companies. The partnership consists of a collaboration R & D, products, and functions shared as well as combined efforts to educate and inform the public on the opportunities offered by the technology blockchain. The adequacy of the token DGX on the platform ETHLend has already been successfully tested, the lending test is guaranteed by the token of gold, DGX.
Thus, the token DGX will be added as the first token fixed on the application. This means that a borrower using a token DGX on ETHLend does not need to provide the address of the smart object in the token. Instead, this information will already be available in the application.
Taking into account the volatility
The volatility of the currencies digital is an important factor in the determination of credit risk, ETHLend and Digix rank the volatility of different tokens and carry out a mapping of the results for users to understand the inherent risk of volatility. Such categorization is beneficial for the safety of participants in loans, and highlights the power of tokens backed by assets such as DGX. In addition, ETHLend will seek to include the swap collateral, in order to allow swaps of assets on the platform between currencies with high and low volatilities, such as DGX, if the collateral value falls below a certain threshold in the course of repayment.
DGX as a Token.
ETHLend will develop a contract smart on the testnet Kovan to find the subject of the loan token. ETHLend has received numerous requests for the addition of ready token. Allowing for different investment strategies such as hedging or short selling. DGX is the token ideal for a ready stable. ETHLend will loans token on its decentralised application if the community continues to express the need.