A crypto loan is a type of loan that is backed by cryptocurrency assets. In a crypto loan, a borrower uses their cryptocurrency holdings as collateral to secure the loan, which is then issued in stablecoin.
The crypto loan service of LYOTRADE works in these steps:
- 1.You select crypto collateral to give to the platform, such as a coin like BTC or ETH. Lend them and get a chance to earn from their increase in value.
- 2.In exchange, LYOTRADE gives you a stablecoin of your choice among USDT, USDC, and BUSD. Use these stablecoins to trade or buy as you choose.
- 3.You will pay a monthly fee. Our interest rate is one of the lowest in the market. At the end of the loan agreement, you will receive your collateral back and, after subtracting the monthly costs, you will have earned it from the initial stablecoins.
- 4.You can close the loan at any time. If the price of your collateral rises, you will receive back the amount you borrowed in the initial currency and the stablecoins.
- Select from more than 60 collateral options to get stablecoins back. Apply for a crypto loan starting from 100 USDT.
- If you want to deposit the collateral using another external wallet, you don’t need to undergo the KYC process. Otherwise, depositing the collateral through LYOTRADE will require you to complete the verification process.
- The percentage rate ranges from 12% to 16% annually.
- Loan-to-value, or LTV, is set at 50% or 70%. That means that we give you 50% or 70% of the collateral value as a loan. This allows us to minimize your risk and protects you from severe volatility in the price of your collateral.
The collateral available to lend are BTC, ETH, DOGE, XMR, BCH, XNO, DGB, FIRO, and XPR. Unlike trading cryptocurrencies, crypto deposits do not require you to be a cryptocurrency expert. The funds are not frozen for a certain amount of time and are available for withdrawal anytime. The whole process is as easy as that: open a deposit and start earning exactly that day.
We carefully keep it under control for the whole period of time. Although, if the rate of the collateral currency reaches the liquidation level, the collateral will be automatically liquidated and the loan will be closed. It is impossible to return the collateral after liquidation – that’s why we will notify you multiple times when the current rate approaches the liquidation price.