I've written previously about why I'm bullish on SALT – https://steemit.com/cryptocurrency/@kaigani/salt-lending
Researching further, I discovered this thread: https://mobile.twitter.com/SaltLending/status/922544884170440704
Essentially, what this means is that Salt can be used on the platform to pay down interest at retail price ($25) regardless of the market price (currently $3-4).
This will lead to a great arbitrage opportunity, with a lot of pressure on the market price to match retail.
Suppose you take out a loan which would result in a $1000 interest payment. You can pay that interest down with 40 Salt, which at the current exchange rate would be worth $120. Taking that further – if you invested the loan amount at a fixed rate, or a proof-of-stake coin that with a higher return than the interest rate you've paid down, you would be earning on your loan.
Obviously the market will not leave that much of a spread for long, so I think market price will quickly come up post launch (est. Dec).
hey, I just upvoted you!
I was just going through a lot of white papers and I found that CoinLoan is quite an interesting project when compared to Salt and EthLend. I’ve covered it in a lot of detail at http://cryptoupdates.net/guides/coinloan.