The Able project is designed to eliminate many of the disadvantages of the modern banking sector, related to lending, deposits and various services. The system will allow its participants to make proposals on the interest rates of loans, eliminating the spread on deposits and loans through direct peer-to-peer connection of users.
You can manage your crypto-currency capital by means of clever contracts. As a result, this project is aimed at creating a full-fledged ecosystem integrated with external services, including simple payments.
What problems does the project solve?
Nowadays the traditional banking system has two critical disadvantages:
Their business model is based on a credit-deposit spread (this is the difference between interest rates on deposits and loans), and in this case the bank is the intermediary between those who take loans and investors. This scheme gives banks the opportunity to receive deposits with low interest rates, and give on credit - at huge rates, receiving income from the difference.
The existing banking crypt-currency services have a centralized architecture. They are extremely vulnerable due to the maximum interest rates and centralized services, the danger in these cases represents the moral qualities of managers and the chance of hackers penetrating to the central server. Up to the present moment many banking services are not suitable for use by the public, because there are no integrated solutions.
Used in the project Able blockchain and decentralization can solve these problems together with many other smaller ones.
A unique matching mechanism has been developed, linking borrowers to investors on a peer-to-peer basis. No additional intermediaries are required for this. Thus, interest rates will be determined by mutual agreement between users within the free market, and the selected rates will be considered the market ones.
Depositors will receive increased interest from their deposits in comparison with those that are issued in a centralized market. And borrowers can take loans with a lower rate and use smart contracts for this, forming a so-called win-win scenario.
At the initial stage, the Able platform will provide the following options:
- Mechanisms of investment and lending;
- Salary and credit history, payment points for credit confirmation;
- Simplified process of payment and account maintenance.
- Regulated by smart investment contracts.
The main principle of decentralization is the distribution of values among all actual participants, as well as the removal of unnecessary intermediaries from the business model. The comparison algorithm which connects investors and borrowers gives them the opportunity to share the actual value.
Token and consensus mechanism
The currency Able consists of Able Coin and Able Dollar .The first one is used as a service charge for using the system, the second - for interest payments. They can be exchanged among themselves.
The total amount of Able Coin is 25 billion.The consensus mechanism used is Proof-of-Stake . The additional inflation rate due to the initial PoS-operation is 15%, in the long term - 5%.
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