CoinEx has launched its new "Crypto-Backed Lending" service, a flexible financial solution designed to help digital asset holders access liquidity without needing to sell their holdings. This service allows you to use one or multiple cryptocurrencies as collateral to borrow other digital assets, which can be used for trading, further investment, or withdrawals. By doing so, you can enhance your capital efficiency and flexibility within the crypto ecosystem.
Key Benefits of Crypto-Backed Lending
1. Diverse Collateral Options
CoinEx supports a wide range of cryptocurrencies as collateral, enabling you to pledge multiple assets simultaneously to borrow a single currency. This flexibility allows you to leverage your existing portfolio according to your preferences and needs.
2. Borrow and Repay Anytime
Once you take out a loan, you can repay it at any time, as long as your collateral ratio remains above the liquidation threshold. There are no fixed repayment periods, giving you full control over your borrowing timeline.
3. Higher Loan-to-Value (LTV) Ratio
Compared to many other platforms, CoinEx offers a higher initial LTV ratio. This means you can borrow more against the same value of collateral, maximizing the utility of your assets.
4. Flexible Repayment Methods
CoinEx allows repayment using the collateralized assets themselves. If you don’t have enough of the borrowed asset to repay the loan, you won’t need to worry about forced liquidation or sourcing the exact token. Instead, you can settle your debt directly with your collateral, simplifying the process and reducing potential hassles.
How to Access Crypto-Backed Lending
- Web Users: Log in to your CoinEx account, navigate to the top menu, and select 【Finance】 -> 【Crypto-Backed Lending】.
- App Users: Stay tuned for future updates.
Supported Cryptocurrencies
| Type | Supported Assets |
|---|---|
| Collateral | BTC, ETH, USDT, BNB, XRP, DOGE, ADA, SOL, TRX, DOT, MATIC, LTC, SHIB, BCH, LINK, ATOM, ETC, ARB, CET |
| Borrowable | USDT |
Note: Additional currencies will be supported in the future.
Interest Calculation
Interest is calculated and charged hourly, starting immediately after the loan is disbursed. Each subsequent hour, interest is computed based on the outstanding principal (accrued interest is not compounded).
The formula for hourly interest is:
Loan Amount × Daily Interest Rate ÷ 24
👉 Explore flexible lending options
Risk Disclaimer
All trading and borrowing activities involve risk and require personal discretion. CoinEx is not liable for any losses incurred through the use of this product. It is essential to read the lending guide thoroughly, assess your risk tolerance, and make informed decisions.
CoinEx reserves the right to interpret and amend this announcement as needed.
Frequently Asked Questions
What is crypto-backed lending?
Crypto-backed lending allows you to borrow digital assets by pledging your existing cryptocurrencies as collateral. It’s ideal for accessing liquidity without selling your long-term holdings.
Which cryptocurrencies can I use as collateral?
You can use a variety of major cryptocurrencies, including BTC, ETH, USDT, and CET, among others. The full list is available in the Supported Cryptocurrencies section.
Can I repay with a different currency?
Yes, CoinEx allows you to repay your loan using the collateral you’ve pledged, offering greater flexibility compared to platforms that require repayment in the borrowed asset.
How is interest calculated?
Interest is calculated hourly based on the outstanding loan amount. The hourly rate is derived from the annual percentage rate divided by 24.
Is there a fixed repayment period?
No, you can repay your loan at any time, as long as your collateral value remains above the liquidation level.
What happens if my collateral value decreases?
If the value of your collateral drops significantly, you may risk liquidation. It’s important to monitor your collateral ratio and manage your risk accordingly.
Disclaimer: This content is for informational purposes only and is not intended as investment advice. Always consult a qualified financial advisor before making investment decisions. All investments carry risk, and past performance is not indicative of future results.