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What is SALT (SALT)?

SALT (Secured Automated Lending Technology) is a blockchain-based platform that enables users to secure loans using their cryptocurrency assets as collateral. Launched in 2016, SALT allows individuals and businesses to access liquidity without the need to sell their crypto holdings, which can be particularly beneficial during volatile market conditions. The SALT token (SALT) is used within the ecosystem to facilitate transactions, pay for fees, and access various services offered by the platform.

Who are the Founders of SALT?

SALT was founded by a team of professionals with diverse backgrounds in finance, technology, and blockchain. The primary founders include:

• Bill Sinclair - Co-founder and former CEO, with extensive experience in blockchain and technology.
• Shawn Owen - Co-founder and former CEO, who has a background in finance and entrepreneurship.
• Ryan Lichtenstein - Co-founder, known for his expertise in technology and product development.

The leadership team has since evolved, but these individuals were instrumental in the initial vision and development of the SALT platform.

How does SALT Work?

SALT operates on a simple yet effective model that allows users to leverage their cryptocurrency assets for loans. Here’s how it works:

1. Collateralization: Users deposit cryptocurrency as collateral to secure a loan. The platform typically requires a loan-to-value (LTV) ratio, which means that the value of the loan cannot exceed a certain percentage of the collateral's value.
2. Loan Issuance: Once the collateral is locked in, users can receive a fiat loan or stablecoin equivalent based on the agreed terms. The platform supports various cryptocurrencies, including Bitcoin, Ethereum, and others.
3. Interest Payments: Borrowers are required to pay interest on the loan, which can vary depending on the collateral type and market conditions. Payments can be made using either fiat or cryptocurrency.
4. Collateral Release: Upon repayment of the loan and interest, users can retrieve their collateral. If a user fails to repay, the collateral may be liquidated to cover the loan amount.

Top Use Cases of SALT

SALT has several practical applications that cater to different user needs:

• Accessing Liquidity: SALT allows crypto holders to access cash without selling their assets, helping them to take advantage of market opportunities or cover immediate expenses.
• Investment Opportunities: Users can secure loans to invest in other opportunities while retaining ownership of their crypto assets, potentially enhancing their overall portfolio.
• Business Financing: Companies can use SALT to obtain working capital quickly, using their crypto holdings as collateral for operational expenses or expansion.
• Tax Management: By using SALT for loans rather than selling crypto, users can avoid triggering taxable events associated with capital gains.

How to Keep your SALT Safe?

Ensuring the safety of your SALT tokens and collateral involves several best practices:

• Use Hardware Wallets: Store your SALT tokens in a hardware wallet rather than on exchanges or online wallets to reduce the risk of hacks.
• Enable Two-Factor Authentication (2FA): Always enable 2FA on your SALT account and any linked exchange accounts to add an extra layer of security.
• Regularly Update Software: Keep your wallets and any related applications up to date to protect against vulnerabilities.
• Be Cautious with Links: Avoid clicking on suspicious links or providing personal information on unverified platforms to prevent phishing attacks.
• Monitor Loan Status: Keep a close eye on your loan's LTV ratio and market conditions to avoid liquidation risks.