What is Nitrogen network?
Nitrogen is a decentralized peer-to-peer lending network based on the top of Ethereum blockchain. It provides an opportunity for a range of market participants to generate income, liquidity, or hedge their risks, and take varied investment views on the cryptocurrency market.
How is Nitrogen service different from a margin account on an exchange?
Margin trading on the exchange is essentially trading with borrowed funds instead of your own. When you place a margin order, all of the money you are using is borrowed from other users offering their funds as peer-to-peer loans on the exchange.
The funds in your margin account are used only as collateral for these loans and to settle debts to lenders. Because all the traditional exchanges are centralized, they control their risks and net exposure internally and thus are able set a leverage, i.e. allow you to post margin amount smaller than the amount of funds you are borrowing.
With Nitrogen borrower's collateral is stored in a decentralized manner in an ethereum smart contract, significantly reducing counterparty risk. There amount of loan is always covered in redundancy by the supplied collateral, so there is no leverage as on traditional centralized exchanges.
Why should I use Nitrogen service?
1. Nitrogen network is secure. Only approved Ethereum addresses may interact with Nitrogen smart contracts.
2. Nitrogen network provides a wide range of assets for users to lend or borrow. Currently these assets are limited to ERC20 tokens and Ether, but we are testing solution with stable coins for fiat and other blockchains such as BTC, EOS and other blockchains which support scripting. We are constantly working closely with different Ethereum-based projects to get their tokens listed on our Network.
3. Nitrogen Network implements automated functionality of loan overcollaterization and borrowers auto-default procedure, leading to full protection of Lenders in the event of borrower's default or margin call.
Does Nitrogen provide loans?
Nitrogen is the peer-to-peer network, therefore we don't provide loans ourselves. Nitrogen is intending to become a liquidity provider to the market and puts a lot of effort to engage initial market makers to get onboarded on the platform to supply liquidity in ERC-20 and ETH both from lending and borrowing side.