bZx Network released a new application called Torque that would allow users to take indefinite-term loans. Torque is going to be working with Web3 wallets, including Metamask. The information was released by the company in a press release on September 4.
bZx Network Launches New Loan System
According to the information released by the firm, Torque is going to be working with a large number of wallets thanks to a first-of-its-kind Ethereum Name Service (ENS) created by Torque. With this new service, users will be able to borrow assets by simply sending collateral to a human-readable ENS domain using a digital asset wallet.
Users will be able to interact with the Torque interface in order to select a loan and accept the transaction using a compatible wallet. It is possible to receive DAI – one of the most recognized stablecoins in the market – and collateralize the loan in Ethereum (ETH).
The loans provided by Torque are borrowed from Fulcrum iToken lending pools, the margin trading interface of bZx Network. Individuals would be able to make deposits of Ethereum and other ERC-20 coins that are supported by Fulcrum. ERC-20 coins that are used as collateral will have an initial margin of 250% and margin maintenance of 200%. Things look different for those users dealing with ETH and other stablecoins. They will have an initial margin of 150% and margin maintenance of 115%.
The BZx Network team commented about it:
“Torque presents users the easiest borrowing experience in the industry, requiring only a single transaction while providing all the power and flexibility of existing decentralized borrowing platforms. Since it draws from Fulcrum’s liquidity pools, Torque will have deep liquidity starting from day one.”
In addition to it, they consider that ENS loans are a very important advancement in user experience. Furthermore, as Torque is going to be using Fulcrum’s liquidity pools, it would be possible for users to have liquidity starting the first day after launching.
In order to close a loan, users will have to send the borrowed amount and interest to the Torque smart contract address that issued the loan. In this way, the funds will be released from escrow and will go back to the originating wallet as well as refund unpaid interest.
There are several blockchain-based crypto-related loan services that help individuals in the cryptocurrency market to take loans and use some digital assets as collateral.