Crypto Loans on LYOTRADE: How Do They Work?

6 mins read

LYOTRADE announced its last new service: Crypto loans! This is a useful resource to make the most from your coins, such as BTC and ETH that you hold in your wallet.

  • Borrow LYOTRADE your crypto. You will receive stable coins that you can use as you prefer, sell them or use them to trade.
  • Choose from more than 60 collateral options. Instead of keeping them in your wallet, borrow them and earn from their value rise, while using the stable coins received.
  • Receive stable coins as USDT immediately. Request the loan, enter the wallet address, and receive them in about 10 minutes. No KYC and credit check.
  • You will receive earnings from the increase in the price of your initial collateral. In the event that the price falls, they will be paid out at a fixed price, announced in your request.

What Is a Crypto Loan?

In brief, you lend cryptocurrencies and tokens to LYOTRADE in exchange for stablecoins that you receive immediately. You can use these stablecoins – USDT, USDC, and BUSD – as you wish. LYOTRADE supports a special wallet, and private keys are put in secure storage that can be accessed only by a limited number of IP addresses through a VPN connection. Private keys for all wallets are renewed every month. The risk control system checks all wallet balances every second.

Why Use the Service?

The purpose of a crypto loan is to make earnings from the crypto you hold, to get an instant amount in stablecoin, and then receive back your initial collateral, thus getting you both your collateral and the stablecoins.

There are many cryptocurrencies that are worth keeping for the long term, such as bitcoin. Instead of holding them in your wallet and waiting, you can achieve more. Lend them to us at LYOTRADE: we will give them back to you at a set point in time. In the meantime, you immediately receive stablecoins that you can use to trade or make purchases. In short, you can use them for whatever you choose.

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, plus you will have received the stable coins.

How Does a Crypto Loan Work?

Set the amount to borrow and receive stable coins, starting from 100 USDT. The percentage rate depends on the selected loan currency and ranges from 12% to 16% yearly. The interest is calculated monthly from the time the loan was taken out and is included in the repayment amount.

Right now, our 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 stark volatility in your collateral price.

You will pay a monthly fee. Our interest rate is one of the lowest on the market. At the end of the loan agreement, you will receive your collateral back and, by subtracting the monthly costs, you will have earned it from the initial stable coins.

Keep in mind that crypto loans can expire if the price of your collateral drops.

What Is Liquidation Price?

The liquidation price, or LP, is the collateral’s asset value at which we have to liquidate your loan. This amount is calculated due to us being able to compensate the issued loan if the collateral’s value drops in price significantly.

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.

What Assets Does LYOTRADE Support?

At the moment, we support more than 60 assets for collateral deposits including: BTC (Bitcoin), ETH (Ethereum), BCH (Bitcoin Cash), Nano (XNO), DOGE, DGB (Digibyte), XMR (Monero), FIRO, XPR (Ripple) and ETH based tokens such as ENJ, LINK, MKR etc. As for loan currencies, we offer Tether USDT (on different network), BUSD, and USDC. Moreover, we constantly expand our list of available assets.

Win Against Volatility

Crypto deposits allow you to avoid risks especially when the crypto market looks uncertain or volatility has significantly increased. No matter the crypto market movement, crypto deposits allow you to earn steadily. 

Unlike trading cryptocurrencies, crypto deposits do not require you being 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.

Ready to get your crypto loan? Start here! https://crypto-loan.lyotrade.com/


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