Crypto lending platforms provide a way to lend digital assets to people who don’t have access to them. These platforms enable decentralized peer-to-peer lending, and depositors retain ownership of their tokens while earning and paying interest on them. In the process, they automate functions that are typically handled by banks and custodial lending platforms. As a result, crypto liquidity is the efficiency with which digital assets can be converted into cash.
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CoinLoan
CoinLoan is a crypto lending site that lets its customers use their crypto assets as collateral. These assets can include Bitcoin, Ethereum, PAX Gold, and much more. Customers can get a loan for as low as 4.5% interest with no credit check or prepayment penalty. The only cost is a one percent origination fee and monthly payments.
CoinLoan is a good choice for crypto investors. Its borrow and earn features allow users to use more than twenty types of coins. The site also lets users borrow fiat money, stablecoins, and other assets. In addition, users can earn over 12% yields from their deposits.
Hodlnaut
Hodlnaut is a crypto lending marketplace that allows users to take loans in BTC, ETH, or USDC, depending on the value of the deposited funds. Its interest rates are based on the market’s demand, and users can withdraw their funds at any time. The company also offers institutional loans that serve business needs and diversify crypto portfolios. Customers can choose from a range of loan terms, including a short-term open-term loan and a longer-term, fixed-term loan. Moreover, Hodlnaut offers fixed deposit rates for users who want to deposit a certain amount of their crypto.
The platform is based in Singapore, and offers high APY and security to customers. It is one of the fastest growing crypto lending platforms, with over $250 million in AUM and a monthly growth rate of 20%.
Ledn
Ledn is a Canadian-based crypto lending platform that enables you to borrow and lend cryptocurrencies. It is incorporated under the Federal Laws of Canada, making it legal for Canadian residents to trade cryptocurrency. While digital assets are not considered legal tender in Canada, they are still subject to regulation. As such, the company takes security measures to ensure that its customers’ funds are kept secure. It uses BitGo as its custodian, which provides multiple layers of security including multi-signature security and 3-key management.
Ledn Bitcoin-backed loans can be received as soon as 24 hours after approval, and you don’t have to make any monthly payments. Moreover, you can pay back the loan anytime. Ledn also has an app for iPhone and Android users. The application is free to download from the respective app stores. While the app is currently only compatible with two cryptocurrencies, the company has stated that more will be added soon. The app also supports the earning of interest on Ledn loans.
Compound
Compound is a decentralized on-chain crypto lending platform based on Ethereum blockchain protocols. It allows users to lend and borrow around twelve Ethereum-based assets, and reap interest on them. To become a lender, all users need to do is deposit their tokens into the Compound Lending protocol via DeFi Earn, which then transfers those tokens into a smart contract. In return, they receive cTokens, which are essentially a claim to the assets lent.
To use the Compound crypto lending platform, users must have a Web3 digital wallet, which will act as a bridge between the Compound application and their cryptocurrency assets. They will also need a small amount of Ether, which is a cryptocurrency used on the Ethereum blockchain. After completing these steps, users can check the current supply balance of their crypto assets and see the net annual percentage yield.
Alchemix
The Alchemix crypto lending platform is a cryptocurrency lending platform that lets users borrow against future deposits. Alchemix allows its users to deposit a minimum of $10,000 and then borrow the remainder. These loans are repaid using the proceeds of their deposits. During the repayment period, the user earns a 10% interest rate on the amount of money that they deposited. This interest goes straight towards repaying the loan and does not accumulate.
The platform is built on the Ethereum blockchain. It offers users a decentralized way to invest their DAI, a stablecoin pegged to the US dollar, in order to obtain a loan against their deposits. The loan is automatically repaid over a set period of time. It also accepts a range of other coins in the future.
Unchained Capital
Unchained Capital is a crypto-based lending platform that offers personal and business loans. Borrowers put up bitcoins or ether as collateral. The lender doesn’t conduct a credit check, instead it uses a loan-to-value ratio to determine whether the borrower is a good risk. Typically, the amount of the loan is between 35 and 50% of the borrower’s deposit.
This platform is not available in all regions and may not comply with local regulations, policies, and laws. However, it does have a competitive price structure. The main drawback is that there are few educational resources on the website. It may require a user to contact customer support to get answers to basic questions.
