Problem Statement
The existing financial landscape faces several persistent challenges that Baselend aims to address:
Centralized Control Banks and other financial institutions still have a near-monopoly on lending, often restricting who can access capital. These barriers disproportionately affect the unbanked and underbanked—over 1.4 billion people worldwide (World Bank, 2023)—who may be excluded due to lack of credit history or geographic limitations.
High Costs and Fees Intermediaries in lending transactions increase both interest rates for borrowers and reduce overall returns for lenders. For instance, borrowers can face double-digit interest rates (10-20% in the U.S.), while savings account holders earn minimal yields (1-2% net), largely due to middlemen fees.
Opacity and Inefficiency Many traditional loans involve tedious paperwork, lengthy approval times, and hidden fees. This complexity, coupled with a lack of transparency, undermines user trust and slows the flow of capital.
DeFi Shortcomings Although DeFi introduced alternatives, these platforms can still be plagued by:
High Gas Fees: Ethereum transactions can skyrocket to $10-$100 in high-traffic periods.
Complexity: Wallet setup, seed phrases, and navigating multiple protocols are daunting for newcomers.
Scalability Limitations: Network congestion reduces transaction speed and deters mass adoption.
Baselend is designed to overcome these obstacles, blending the best of blockchain technology with real-world usability.
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