The new lending platform, which is built on Ethereum ERC 20 smart contracts, enables borrowers access to what is described as “capital-on-demand” through its network of lenders. The upshot is that this helps preserve the value of investor holdings.
So it's reliant on the Ethereum blockchain?
If so, then this is not new competition. Ethereum is inferior in it's economic model and technical implementation to BitShares 2.0
The key innovation of the blockchain is its distributed, peer-to-peer ledger.
This smells like the fishy bullshit banksters like to say. Maybe not
SALT want's to allow crypto-bulls to "cash in" some of their investments without actually having to sell any of their beloved stake. SALT want to allow you to trade your crypto the them, or their "oracle" (inferior to BitShares' Witness') and they will lend you a fiat amount.
CryptoHolders can already use BitShares to borrow money in the same manner that SALT want to offer.
BitShares' users can short bitUSD to take out a loan against their investment.
Lacking hardware wallet support, many holders may not feel comfortable risking their entire stake just to take out a loan to spend early.
TREZOR and multicoin wallets will solve this issue.
In order for BitShares holders to take out a long term loan on the value of their bts collateral, they have to be very sure that the bts-price will not decrease by more than 5x ever again.
500% bts collateral, in order to borrow 1/5th of the value of their bts-collateral.
SALT may be able to offer better rates, and be competition for BitShares.
However, if SALT lives or dies by the successes of Etherium then BitShares will come out on top.