We have seen the launch of a new service: Loans made with cryptocurrencies. Who is offering this? The LYOTRADE crypto exchange!
LYOTRADE is part of the LYOPAY ecosystem, a name that is making its way into the fintech industry. With the vision of making cryptocurrencies easily spendable and usable, this project releases products and features to use them.
When it comes to loans, it is still a novelty to see them with cryptocurrencies and not from a typical bank. Yet, they do exist, and they can be the solution to earn from the tokens that we hold, and also to obtain stable coins as USDT, for trading or selling.
The crypto loans on LYOTRADE arise from the partnership with CoinRabbit. CEO Vlad Sirmons said:
“We at CoinRabbit are convinced that cryptocurrency should become an everyday tool for everyone, so we are happy to help the LYO ecosystem with our lending solution to achieve these goals as soon as possible.”
How do crypto loans work?
The concept of this service is simple: We crypto enthusiasts have cryptocurrencies to hold and others to trade. We keep those that hold for the long term. Crypto loans are a way to make these cryptocurrencies available for a period of time, and then take them back at the end of the loan.
Why do this? Because in exchange for this borrowing, you are given stable USDT, USDC, and BUSD coins that you can use as you wish. You can trade or sell them directly. You pay a monthly fee, which is low. Adding and subtracting them from your earnings, the result will be positive.
Loan-to-value
The percentage rate ranges from 12% to 16% annually. This interest is calculated monthly and included in the repayment amount. The loan-to-value (LTV) is set at 50% or 70%. LYOTRADE then gives 50% or 70% of the collateral value as a loan. This allows user risk to be minimized and offers protection from the stark volatility of collateral prices.
If the price of your collateral rises, you will receive back the amount you borrowed in the initial currency, plus you will have received the stable coins. You can close the loan at any time. If the price falls, the collateral currency reaches the liquidation level, the collateral will be automatically liquidated, and the loan will be closed.
Get your crypto loan at: Website
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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