Inside Lantern Finance: An Interview with Innovators Transforming Crypto Lending and Staking

Welcome, everyone! Today, we’re thrilled to share insights from our conversations with the team at Permissionless III in Salt Lake City, Utah. We have the pleasure of hosting three exceptional leaders who are driving innovation in the fintech and cryptocurrency sectors. Their unique backgrounds and visionary approaches are shaping the future of finance.

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Jung Won Kim - CEO of Lantern Finance
We are thrilled to welcome Jung Won Kim, Co-Founder and CEO of Lantern Finance. Jung began his career in leveraged finance at Capital One and Silicon Valley Bank, before moving on as a strategy consultant at Rock Paper Reality. He began his crypto journey in 2016, researching Ethereum and its use cases for Korea Investment Partners, a Korea-based VC. He was impacted by the implosion of the first iteration of crypto lenders like BlockFi, which led him to build Lantern. His vision for making everyday crypto usage accessible and secure promises to inspire us today. Welcome Jung!

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Prince Jindal - Co-founder of Lantern Finance
Next, we’re excited to introduce Prince Jindal, Co-Founder of Lantern Finance, where he’s pioneering a platform for crypto-backed loans. Since joining in March 2023, Prince has been vital to the company’s growth, leading to its selection for Techstars '24. Previously, he founded MetaYield, innovating yield strategies for crypto assets. His financial management experience includes roles as Portfolio Manager at R.G. Niederhoffer Capital Management and Dwight Securities Management, and he began his career at The Blackstone Group. Prince will share insights on the evolving landscape of crypto finance. Welcome, Prince!

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Deegii Altangerel - CTO of Lantern Finance
Finally, we’re excited to welcome Deegii Altangerel, Co-Founder and CTO of Lantern Finance, part of Techstars '24. With a unique background in both medicine and technology, Deegii transitioned from coding human DNA to front-end development, focusing on React and JavaScript. Their career includes roles as Senior Frontend Software Engineer at Nike and System1, creating applications that blend 2D and 3D elements. Deegii is dedicated to improving lives through technology, evident in their healthcare experience as a Lead Pharmacy Technician and volunteer. We look forward to hearing Deegii's inspiring vision for the future of fintech. Welcome, Deegii!

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The Interview:

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Jung Won Kim: Hi, I'm Jung Won Kim. I'm a co-founder of Lantern Finance.

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Deegii: Hi, I'm Deegii. I'm also a co-founder at Lantern.

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Prince: Hey, I'm Prince. I'm one of the co-founders as well.

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James (CryptoBit Mag): Can you explain the platform and why it was created?

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Jung Won Kim: Sure. What we're doing at Lantern is trying to help people do more with their crypto. Right now, our main product offering is enabling people to access liquidity through loans against their crypto assets. We're targeting less technical users who want a loan against their crypto. We lend up to 50% of Bitcoin, Ethereum, or Solana value, and can directly fund loan amounts in fiat to bank accounts. We also offer staking.

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Deegii: Basically, it's our version of an earning and borrowing platform. As Prince mentioned, our target base is people who are a bit more scared of self-custody because of the responsibilities involved. They're also averse to smart contract risk and DeFi, given the many exploits in the past.

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Jung Won Kim: The reason we created Lantern is because many of your readers and viewers might have heard of or interacted with platforms like BlockFi, Celsius, and Voyager - the crypto lenders of the past. I personally was a big fan of BlockFi and was a client there, but when they fell in 2022, I lost a lot of my crypto collateral. Prince was also impacted by Genesis through his crypto credit fund.

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In the aftermath, it turned out these platforms weren't being upfront about what they were doing with client assets. They were taking funds from their earn programs, as well as loan collateral from borrowers, and lending those out to crypto-native hedge funds and market makers on an under-collateralized or unsecured basis. In hindsight, it was very risky and unnecessary. They were lending out very recklessly and also doing yield farming on DeFi protocols. When those platforms fell, we thought we could do this in a much better, more secure way. So we're filling the gap today in the credit markets for crypto. We only do over-collateralized loans. All of the borrowed collateral is only stored in cold storage or staked natively, so there's no counterparty risk. That's the origin story for us.

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James (CryptoBit Mag): Which countries are you available in currently?

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Jung Won Kim: We're mostly US-based right now.

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James (CryptoBit Mag): Where are you guys headquartered?

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Jung Won Kim: We’re headquartered in San Francisco, but the team is remote. Prince is in New York, Deegi in Denver, and I’m based out of Los Angeles.

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James (CryptoBit Mag): And the platform is currently working?

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Jung Won Kim: Yes, we're live. We're working on Lantern 2.0 with a loan portal, just to make it easier for people to handle documentation and keep track of their assets and things like that.

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James (CryptoBit Mag): Do you have any social media channels, like a Telegram where people can connect?

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Deegii: We don't have a community on Telegram or Discord, but we are fairly active on Twitter and LinkedIn. We're also building a presence on Instagram. Users can get in touch with us through our robust customer support. We offer 24/7 phone service and email support if users need any help.

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Visit Lantern Finance:

https://lantern.finance/

For the latest insights, updates, and news from Lantern Finance, be sure to follow their social media pages:

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Diving Deeper into Lantern Finance: Unlocking the Potential of Your Crypto Assets

Last week, we had the privilege of interviewing the co-founders of Lantern Finance: Jung Won Kim, Deegii, and Prince. Today, we're expanding on that conversation to give you a comprehensive look at how Lantern Finance is changing the game for cryptocurrency holders. Whether you're a seasoned crypto investor or just getting started, here's what you need to know about leveraging your digital assets with Lantern Finance.

The Birth of Lantern Finance: A Response to Industry Challenges

Lantern Finance was born out of personal experiences and a desire to create a more secure platform for crypto enthusiasts. As Jung Won Kim shared in our interview:

Many of your readers and viewers might have heard of or interacted with platforms like BlockFi, Celsius, and Voyager - the crypto lenders of the past. I personally was a big fan of BlockFi and was a client there, but when they fell in 2022, I lost a lot of my crypto collateral. Prince was also impacted by Genesis through his crypto credit fund.

These experiences led the team to create a platform that prioritizes transparency and security, filling a crucial gap in the crypto credit markets.

What Sets Lantern Finance Apart?

1. Focus on Security: Unlike some previous platforms, Lantern only does over-collateralized loans. All borrowed collateral is stored in cold storage or staked natively, minimizing counterparty risk.
2. Transparency: Lantern is upfront about what they do with client assets, avoiding the risky practices that led to the downfall of other platforms.
3. User-Friendly Approach: As Deegii mentioned in our interview, Lantern targets "people who are a bit more scared of self-custody because of the responsibilities involved. They're also averse to smart contract risk and DeFi, given the many exploits in the past."

Key Features of Lantern Finance

Crypto-Backed Loans

• Borrow up to 50% of your Bitcoin, Ethereum, or Solana value
• Loans funded directly in fiat to bank accounts
• Fixed interest rates starting at 5% for up to 12 months

Staking Options

Lantern offers both custodial and non-custodial staking:

1. Custodial Staking: Deposit your crypto with Lantern's custodian (15% fee on staking rewards)
2. Non-Custodial Staking: Keep your crypto in your wallet and stake without delays

The Lantern Advantage

• Security and Transparency: Built on blockchain technology for added security
• Flexibility: Options for both borrowing and earning
• Customer-Centric: Focused on building relationships with users

What's Next for Lantern Finance?

During our interview, Jung revealed exciting plans for the future

‍"Today, we offer crypto-backed loans and staking. In the near future, clients will be able to also trade within the platform and also spend via Lantern credit cards. We’re going to be a one-stop shop for all crypto personal finance."‍

This update promises to make the platform even more user-friendly and efficient.

Key Takeaways

• Lantern Finance offers crypto-backed loans and staking options
• The platform prioritizes security and transparency
• It's designed for users who want to leverage their crypto without the complexities of DeFi
• Lantern is currently primarily serving US-based customers
• The team is headquartered in San Francisco but operates remotely

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Get Involved with Lantern Finance

https://lantern.finance/

For the latest insights, updates, and news from Lantern Finance, be sure to follow their social media pages:

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Frequently Asked Questions

What is Lantern Finance?

Lantern Finance is a platform that allows you to:

• Borrow against your cryptocurrency assets.
• Stake your assets to earn rewards.

How Does Crypto-Backed Lending Work on Lantern Finance?

You can:

• Use your cryptocurrencies as collateral to borrow cash.
• Access liquidity without selling your crypto assets.

What Interest Rates Does Lantern Finance Offer for Loans?

• Interest rates start at 5%.
• Rates may vary based on:
  • Loan-to-value (LTV) ratio.
  • Type of collateral.

Can I Stake My Cryptocurrencies with Lantern Finance? What Are the Benefits?

• Yes, you can stake your cryptocurrencies.
• Benefits include:
  • Earning rewards in the staked cryptocurrency.
  • Options for both custodial and non-custodial staking.

What is the Maximum LTV Ratio for a Loan at Lantern Finance?

• The maximum initial LTV ratio offered is 50%.

Is There a Minimum Amount Required to Take Out a Loan or to Stake?

• Yes:
  • For loans, the minimum amount is $1,000.
  • For custodial staking, there is no minimum amount required. However, the minimum for non-custodial staking is 32 ETH.

How Does Lantern Finance Ensure the Security of My Assets?

• Lantern Finance employs various security measures, including:
  • Blockchain security features.
  • Possible insurance on custodial assets.

Can International Clients Use Lantern Finance Services?

• Yes, international clients can reach out to Lantern Finance to explore options for staking or lending services.

What Happens at the End of My Loan Term with Lantern Finance?

• At the end of the 12-month term, you need to:
  • Repay the loan in full, or
  • Optionally refinance for a longer term.

Does Lantern Finance Affect My Credit Score?

• No, Lantern does not report to credit agencies and therefore there is no impact to your credit score whatsoever.