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Binance has added new loanable assets to its Flexible Rate and VIP Loan services, enhancing user flexibility and borrowing options. (Read More)
Binance will discontinue its 7-Day and 30-Day Stable Rate Loan services from September 2, 2024, while VIP Loan services remain unaffected. (Read More)
Binance announces the addition of new loanable assets on its Binance Loans (Flexible Rate) and VIP Loan services. (Read More)
The violin once belonged to Russian Empress Catherine II, also known as Catherine the Great.
Maple Finance launches Syrup, a DeFi protocol offering secured institutional lending, amid lingering skepticism from the FTX-Alameda fallout.
Binance has expanded its loan offerings by adding new loanable assets to its Flexible Rate and VIP Loan services, enhancing options for users. (Read More)
World Assets Ltd. extends loan agreements with trading firms, maintaining 10M WLD in circulation until June 2025. (Read More)
Binance has announced the addition of new loanable assets to its Binance Loans (Flexible Rate) and VIP Loan services. (Read More)
US-based crypto market-maker firm Wintermute has managed to fulfill its debt obligations by repaying $96 million USDT on DeFi lending platform TrueFi. According to the TrueFi dashboard, the uncollateralized loan was repaid on October 14, one day before its due date. One of the largest loans made on TrueFi’s platform, Wintermute’s initial loan from the […]
A leaked investor call from Morgan Creek Digital suggests BlockFi liquidated 3AC for $1 billion, while Celsius reportedly maintained a highly risky assets-to-equity ratio last year that may have caused its recent liquidity woes.
The extended price downturn of the world’s leading crypto asset Bitcoin has made miners’ life particularly difficult. Per Bloomberg’s report, rig owners are neck-deep in loans ranging up to a staggering $4 billion. A growing number of loans are now underwater, according to analysts, as many of the mining rigs lenders accepted as collateral have […]
Apparently, Voyager Digital is out of the woods. The company ran into liquidity issues when Three Arrows Capital failed to pay a huge loan to them. Welcome to another chapter of the crypto death spiral caused by the Terra/ Luna collapse. Who came to the rescue this time? Sam Bankman-Fried’s other company, Alameda Ventures. Is this man bailing out crypto or is he taking total control of the industry? In a recent press release, Voyager Digital announced that it “entered into a definitive agreement with Alameda Ventures Ltd. related to the previously disclosed credit facility, which is intended to help Voyager meet customer liquidity needs during this dynamic period.” That’s one way of putting it. The company received “US$200 million cash and USDC revolver and a 15,000 BTC revolver.” This morning, we announced a definitive agreement with Alameda Ventures for a $200 million dollar cash / USDC revolver and a 15,000 BTC revolver. Read today’s release: https://t.co/8wPfzcaI6K — Voyager (@investvoyager) June 22, 2022 As a reminder, yesterday transpired that FTX, also owned by Bankman-Fried, bailed out BlockFi with $250M. At the time, we described the situation as follows: “Over the last few weeks, the crypto market has been trending down. The contagion effect of the Terra/ Luna extinction event rocked every company out there, most of all those who offered yield on cryptocurrency deposits like BlockFi and Celsius and hedge funds like Three Arrows Capital. These companies’ problems and possible liquidation of assets, in turn, sent the crypto market into even more turmoil.” The Voyager case fits right into that description. Sam Bankman-Fried’s Loan To Voyager, The Conditions The rumors were already flying. On June 16th, analyst Dylan LeClair tweeted “Speculation here, but in its quarterly report, Voyager had loaned $320m to a singapore based entity named “counterparty b”. One has to wonder whether “counterparty b” was 3AC and if so, how much of a hit Voyager took?” The answer came quicker than anyone thought. Speculation here, but in its quarterly report, Voyager had loaned $320m to a singapore based entity named "counterparty b". One has to wonder whether "counterparty b" was 3AC and if so, how much of a hit Voyager took? $VOYG shares are down 33% over the last two days… pic.twitter.com/sCiYskwLEq — Dylan LeClair ?? (@DylanLeClair_) June 16, 2022 In the press release, Voyager explained the loan: “As previously disclosed, the proceeds of the credit facility are intended to be used to safeguard customer assets in light of current market volatility and only if such use is needed. In addition to this facility, as of June 20, 2022, Voyager has approximately US$152 million cash and owned crypto assets on hand, as well as approximately US$20 million of cash that is restricted for the purchase of USDC.” The loan comes with “certain conditions,” among them: “No more than US$75 million may be drawn down over any rolling 30-day period.” “The Company’s corporate debt must be limited to approximately 25 percent of customer assets on the platform, less US$500 million.” “Additional sources of funding must be secured within 12 months.” Voyager Digital price chart on OTC | Source: TradingView.com It’s All About Three Arrows Capital Right Now The press release confirms the rumors, the Singapore-based entity named “counterparty b” was 3AC. “Voyager concurrently announced that its operating subsidiary, Voyager Digital, LLC, may issue a notice of default to Three Arrows Capital (“3AC”) for failure to repay its loan.” In a recent article, our sister site Bitcoinist broke down the hedge fund’s situation: “The crypto fund had been directly in the crosshairs of the Luna crash with exposure of more than $200 million and speculated to be as high as $450 million. At first, the firm had appeared to bounce back from the Luna collapse but it would be soon obvious that 3AC was in a more perilous position than investors thought.” The Voyager situation makes it even more obvious. The company’s “exposure to 3AC consists of 15,250 BTC and $350 million USDC”. So, the Alameda loan covers most of it. What did they have to give in return, though? Formally, “Alameda currently indirectly holds 22,681,260 common shares of Voyager (“Common Shares”), representing approximately 11.56% of the outstanding Common and Variable Voting Shares”. If everything goes well, Voyager has nothing to worry about. However, what if it doesn’t? Voyager levered 3AC up with 650million of their customers money, leaving them with only 150million cash reserves. Who tf is in charge of risk over there, Merrill Lynch? — Tyler (@ApeDurden) June 22, 2022 In any case, for those that like gossip, here’s the story as narrated by Voyager: “The Company made an initial request for a repayment of $25 million USDC by June 24, 2022, and subsequently requested repayment of the entire balance of USDC and BTC by June 27, 2022. Neither of these amounts has been repaid, and failure by 3AC to repay either requested amount by these specified dates will constitute an event of default. Voyager intends to pursue recovery from 3AC and is in discussions with the Company’s advisors regarding the legal remedies available.” Answers And Conclusions The crypto industry as a whole is in a precarious situation. And there’s one question at the center of it, is Sam Bankman-Fried controlling the chaos or is he taking total control of the industry? Featured Image by Sebastian Herrmann on Unsplash | Charts by TradingView
Nexo is a project that is part of a burgeoning decentralized finance (DeFi) sector that is aiming to replicate and replace a range of financial services that have been offered by more established, and traditional entities for a number of years. The advent of cryptocurrencies such as Bitcoin has resulted in the emergence of an [...]
The post Nexo Review: Fast Cash Loans Backed By Your Crypto Holdings appeared first on Blockonomi.
Aave is considered a visionary project. This post is all about Aave price analysis and is this DeFi project worth it?
Weiss analysts are wary over the usage of volatile crypto assets as collateral for long-term property loans.
Santander, a multinational Spanish bank, has announced that it will issue loans in Argentina secured by agricultural commodities-based cryptocurrency. Santander has teamed with Agrotoken to provide these loans to the agriculture sector. The Ethereum, Algorand, and Polygon networks will be used to build the infrastructure. How does Santander’s new collaboration work? Each token will represent […]
Speaking of the same time of the year last season, DeFi reached its pinnacle. The Total Value Locked (TVL) skyrocketed from $1 billion in February to $12 billion in December. Some of the protocols generated 52,000% in returns. Allegiance to the concepts like liquidity mining, yield farming, crypto loans, lending, and borrowing that this year cloaked $96 billion in TVL. Protocols like AAVE emerged as a panacea to fix lending and borrowing problems like KYC, over-collateralization, and excessive interest in centralized finance.
In DeFi lending and borrowing, you can seek loans even if your collaterals are very small. That’s the beauty of this revolutionary technology and the reason why it is mustering loyalty in the FinTech and financial space. So, if you are looking for a quick loan and want to explore the best platforms, this is the right place. In this blog, you will get to know the top 3 platforms to pick for crypto loans.
Best Platforms of 2022 for Crypto Loans #3 Oasis BorrowIn the Maker ecosystem, Oasis is a front runner to provide quick loans. It allows quick access to loans via token minting from the Maker vault. The best part is twin collateralised zones: 50% and 75% Loan To Value(LTV). Hence users have more choices to make while availing loans. The Oasis market is going very strong at $7.3 billion in locked assets. Whereas, there's 2.7 billion in outstanding loans as well.
#2 Compound FinanceIn the last DeFi summer, 4 names dominated the market: Compound, Synthetix, AAVE and MakerDAO. Compound proposed best use-cases of liquidity pools. On the compound protocol, users can lock tokens and earn interest. Borrowers can borrow funds at no fees with a very limited liquidation ratio. Thus safeguarding borrowers against the risk of liquidation. In the event of no loan payment, Compound liquidates only 50% stake. This is a big go-ahead to motivate borrowing tendencies on the compound finance protocol.
#1 AAVEAAVE revolutionized the concept of loans like no other platform. For example, on Compound and Oasis protocol, there's an option for collateralized loans. AAVE introduces completely non collateralized loans. All borrowers need to take flash loans in one transaction and pay it within that same. The upside is borrowers can swap those tokens on protocols with better rates.
In this way, they can walk away with a profit in no time. The only amount to pay is the transaction fee. Such use-cases bring a lot of individuals to the DeFi space. As a result, AAVE is the top shot of lending and borrowing.
AAVE also accepts 24 coins in comparison to other lending platforms. For example, Maker has 18, Compound 9, and Oasis 5.
ConclusionWith more than 2 billion unbanked population, the scope of financial inclusion narrows. Innovative technologies like DeFi have helped cater to this problem. The crypto space is further flooded with new concepts like NFTs and metaverse. These solutions could further drive adoption and fix pressing challenges existing from decades.
© Cryptoticker
The post Top Emerging Platforms for Crypto Loans appeared first on CryptoTicker.
One great thing that the crypto sector has done is change the way we see the financial market. Ordinarily, the market is not always available to everyone, but crypto has removed that barrier. The decentralized finance sector is solely responsible for this revolution. Just like banks, this sector provides decentralized assets but with a different twist. The twists are borrowing, margin trading, lending, and spot trading. Taking crypto loans in the DeFi sector is way easier than using a bank. This is because the person borrowing will not need to share their details.
What Are Crypto Loans?Digital assets sent to a wallet stay there without bringing in profits, no matter how small for the trader. Even though the value may be subject to market fluctuations, the trader does not earn rewards for holding the assets. This is the gap that DeFi loans bridge. DeFi loans are specifically crypto assets borrowers lend. DeFi loans mirror the typical loans that traditional banks offer. However, the stark contrast is that DeFi loans are available to all borrowers while bank loans are available to specific people. To be able to generate interest in lending, most traders use lending pools.
How Do Crypto Loans Work?To be able to take a loan successfully, borrowers usually provide collateral. In this case, the collaterals usually have more value than the crypto they intend to borrow. This means they would need to facilitate the loan with an amount equal to or greater than the amount they are borrowing. However, the collaterals can be in different tokens.
For example, if a borrower wants to borrow one Ethereum, he would need to send one or more Ethereum in DAI. DAI, in this case, is the native token of the lending platform, MakerDAO. After making use of the loan, the trader would repay and add 10% interest. This is the only time that the protocol will return the initial collateral to the trader.
Steps To Take A Crypto LoanIn this tutorial, we will be using the MakerDAO lending platform to put you through how you can successfully take a loan.
The first step will require you to send an amount of ETH to any Ethereum wallet of your choice. In this case, we will be making use of the MetaMask wallet. In the next step, you will visit the Collateralized Debt Portal platform. The next step requires you to connect your wallet to the portal. After connecting your wallet, you will need to click on the 'Open CDP' button. The next step requires you to enter the number of ETH you want to change to DAI.
After reading the terms, you can now click on the 'Collateralized & Generate DAI button. This means your deposited ETH has now been received as collateral and you now have your borrowed DAI. After getting DAI for your collateral, you can now carry out the activities you wish to carry out using the minted DAI. However, one thing to note is that many other services provide crypto loans options. Platforms like Compound, Dharma, and a few others allow traders to borrow tokens.
ConclusionEven though the steps above sounds simple to an average trader, one must not carry it out without an expert's help. This is because there are some challenges that even prolific traders find daunting while connecting their wallets. You should know that most platforms rest their loan collection rate at 1.5x of the amount of loan collected. This means that a trader will pay $150 to facilitate a loan of $100. With this, the network will not approve users that want to use the service without any disposable income
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The post How To Take Out A Crypto Loan On DeFi appeared first on CryptoTicker.
Binance introduces new loanable assets under its Flexible Rate and VIP Loan programs, enhancing options for users seeking cryptocurrency-backed loans. (Read More)
Binance has announced the inclusion of a new loanable asset to its Binance Loans (Flexible Rate) and VIP Loan platforms, enhancing its crypto lending services. (Read More)
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