You now have the option to get an instant loan by depositing your cryptoassets as collateral, with flexible terms.
This promotional item is brought to you in collaboration with Crypto.com
Offer details
Here is a solution that will allow you to keep your precious BTC, while having sufficient cash for your daily purchases or investments of a lifetime.
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Let’s take a closer look at the new offer offered by Crypto.com:
You repay the loans partially or in full at any time with no prepayment charges
1,000,000 USD for institutions
Before clarifying certain points, an explanation of the concept of LTV (Loan To Value) is necessary. This English term is equivalent to your debt ratio : the ratio between the desired loan amount, and the value of your collateral.
Interest rates vary depending on the number of CRO tokens in your possession. If you have less than 100,000 CRO tokens , your annual interest rates (APR) will be:
As with any loan, the greater the value of your collateral compared to the amount borrowed, the lower the interest rate.
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When you have more than 100,000 CRO tokens , the offer becomes even more enticing:
In order to take advantage of this offer, you will need to complete an advanced KYC (Identity Verification Process). In addition, citizens or residents of the following jurisdictions cannot use this service at this time.
Concrete example
I have 1 ETH that I want to keep at a minimum until ETH 2.0 is released . I am out of liquidity but would love to be able to invest in the latest trendy altcoin. I then turned to the crypto.com solution to deposit my ETH as collateral, and obtain USDT or USDC in return.
For the example, we start from the assumption that the value of an ETH is $ 1000 . I have less than 100K of CRO in staking, so I will be able to borrow:
When my loan is fully repaid, I find my ETH . This operation is particularly interesting if, in the meantime, the value of my ETH has increased significantly.