ETHLend is a fully decentralized financial marketplace built on top of the Ethereum Network allowing lenders and borrowers from all over the world to create peer to peer lending agreements in a secure and transparent way using Blockchain and Smart Contracts.

Introducing a New Token Economy Model: Decentralized Microstaking



The goal of increasing the utility of a token is a never-ending quest when developing an Ethereum DApp. Even when you have a modern functional distributed application with a strong use case in the decentralized world like ETHLend, having a healthy token with a high intrinsic value is not easy to achieve. The reason for this is probably rooted in the infrastructure of the token built on the Ethereum blockchain as an accessory to the main currency. The fact that the token can’t be used to pay the platform fees already reduces its intrinsic value dramatically.

Another side of the matter involves the legal aspect of handling the economy of a token. For example, let’s look at the token burning method, which is one of the most popular approaches used to introduce scarcity and reduce total supply. It works well on average, but might introduce some weird anomalies in extreme cases and may increase the risk of having tokens classified as securities. This is because artificially reducing the total supply may not pass the Howey test.

So the question remains: how do we increase the utility of a token and avoid it being classified as a security, while creating more value? To answer this question, we need to explore what it means to create utility for a token and how this might affect its value.
https://blog.ethlend.io/introducing-a-new-economy-model-decentralized-microstaking-cf8b2e41fa6

The fund aims to introduce scarcity, but instead of burning it (like others are doing, which is legally problematic) we will rediatribute it slowly
Thats it
The reason for that is in the concept of token velocity, it's something really interesting and worth elaborate on

Why they just not burn this re-buy tokens? Like this made Binance with their tokens for example. It may increase token value.

Ya, that's true. burning doesn't guarantee a value increment moreover re-buy token.

Note that you pay for all three installments nevertheless.
 when i set terms in a loan request, and slide the 'Amount' to max, how come i can't then set a MPR? what is the logic?

do you have a guide as to what is a good Collateral Amount to use when making a loan offer ?
e.g i'm want to lend 1ETH and will accept OMG as collateral, what is a good amount of OMG to request - 2 month loan at 2% MPR

We are making competitions and giving different opportunities for getting them
For example currently we have a survey for our platform users
they get a shirt and a fee waiver card for filling it

Nexo is backed up by Bancor, Bancor froze hacked tokens showing to have a back door (that nobody knew about) on its smart contract code. I wouldn't put my money with ANY of the two. lol. Ciao ciao we say in Italy