DeFi

Crypto Lending & Borrowing: How it Works

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Why sell your Bitcoin when you need cash? In DeFi, you can have your cake and eat it too.

Collateralized Loans

You deposit BTC as collateral and borrow stablecoins (USDC).

LTV (Loan to Value): If you deposit $10,000 BTC and borrow $5,000 USDC, your LTV is 50%.
Liquidation Risk: If BTC price drops, your LTV rises. If it hits a threshold (e.g., 80%), you get liquidated.

Conversely, you can deposit stablecoins to lend out to borrowers and earn a steady APY.

Calculate your costs and earnings with the Lending/Borrowing Calculator.

Try our official Crypto Lending & Borrowing to run the numbers yourself and optimize your portfolio.

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