Borrowing may not be available to individuals in certain restricted countries. For more information please refer to our Help Centre
What is Borrow and Cryptocurrency Borrowing?
Borrow, or cryptocurrency loans, is a key offering from Lendingblock’s crypto borrowing platform. Borrow allows you to use your Bitcoin or Ethereum as collateral and get instant USDT loans with no credit checks. This way you can leverage your crypto holdings without selling and get access to dollar-backed stablecoin.
Here’s how cryptocurrency borrowing works on the Lendingblock platform:
1.
To get started, you can create an account and deposit the Bitcoin or Ethereum that you intend to use as collateral for your USDT loan. Our crypto loans have a duration of 1 month, 3 months or 6 months. The starting loan-to-value ratio (LTV) is displayed when the loan is being created so you know exactly how much stablecoin you can borrow with your Bitcoin and Ethereum
2.
After creating your Borrow loan, the USDT becomes available to you immediately. You can then do whatever you want with it! Withdraw it, trade it or lock it up in an Earn. The base interest rate for your crypto loan stays the same for the full duration of the term, and can only go down if you qualify for a Boost tier. We are able to offer very competitive interest rates for crypto borrowing because we have more lenders than borrowers on our platform
3.
During your cryptocurrency loan, you will see the updated LTV ratio in real time and if it reaches a certain level, you might need to top up your balance with additional collateral. The principal and the full interest is due to be repaid at the end of the crypto loan. Lendingblock Borrow USDT loans are unique in that all of the interest is due at the end of the loan, unlike other crypto borrowing platforms that require weekly/monthly interest payments
Why Use Lendingblock’s Borrow?
No hidden fees
We don't charge origination fees or monthly servicing fees for our Borrow crypto loans. We strongly believe that's how your crypto borrowing platform should be - transparent, borrower-friendly and with instant loans
No credit checks
When taking out your crypto loan for USDT, we do not carry out credit checks and there is no need to provide any information about your credit history. Crypto borrowers, regardless of credit score, can get instant loans with their Bitcoin and Ethereum as collateral
One simple repayment
Unlike other crypto borrowing platforms, our Borrow loans are unique because all of the interest and principal repayment is due at the end of the loan. This way, you don’t have to worry about making weekly/monthly interest payments to maintain your Borrow crypto loan
Bulletproof Collateral Management
We have spent years and invested significant resources into perfecting our institutional-grade collateral management system. After taking out a Borrow crypto loan, you can be confident that your Bitcoin or Ethereum collateral is secure. LTV is updated in real time and collateral top-ups are managed correctly in times of market stress
Next Level Margin Handling
As a crypto borrowing platform, we realise that taking out a crypto loan can be challenging and that is why we have a top tier margin handling system implemented for all Borrows. In the case of a margin call, additional collateral is topped up automatically from the platform account balance. Equally, any excess collateral is also automatically released from the Borrow loan, so you can put your money to work elsewhere
Decentralized Pricing Feed
We have successfully integrated with Chainlink’s pricing feed with our borrowing platform, which takes in Bitcoin, Ethereum and USDT pricing data from a collection of trusted oracles. This mitigates the risk of pricing collateral from a single provider and avoids accidental margin calls of Borrow crypto loans due to price data glitches
Our Borrow Rates
Currency and Terms
1 Month
3 Months
6 Months
USDT
8.0%
7.2%
6.4%
Rates include 20% Gold Discount
Better Crypto Borrowing with LND Boost
Hold LND in your account and enjoy the benefits for all of your Borrow crypto loans. Qualify for lower interest rates when you Borrow USDT with your Bitcoin and Ethereum, cast your vote on how to prioritise future plans, and more
All of the crypto loans on our borrowing platform start with the LTV ratio of 50% (meaning that for every $2 worth of Bitcoin or Ethereum as crypto collateral, you can borrow up to $1 worth of USDT). We allow the LTV ratio for the cryptocurrency loan to go up to 65% before additional collateral is required, which is automatically topped up from the user account platform balance in the case of a margin call. Any excess collateral is released automatically (in-kind, in Bitcoin or Ethereum) when the crypto loan LTV level goes below 40%.
Is KYC required for Borrow loans?
Identity verification is not required if you are planning to take out a cryptocurrency loan on our borrowing platform. As a result, it also means that we do not carry out any credit checks on our crypto borrowers.
Identity verification requirements depend on the amount of Bitcoin, Ethereum and USDT you plan to withdraw on a daily basis.
No KYC - with this tier, you can withdraw up to $2,500 worth of cryptocurrency per day
Basic KYC - with this tier, you can withdraw up to $25,000 worth of cryptocurrency per day
Advanced KYC - with this tier, you can withdraw up to $250,000 worth of cryptocurrency per day
What are the fees associated with Borrow crypto loans?
When taking out a Borrow crypto loan with us, we do not charge you any origination fees or early repayment fees. Our crypto borrowing platform also doesn’t charge fees when a margin call is issued to the stablecoin borrower, when automatic collateral top-up occurs or when excess crypto collateral is returned.
In the unfortunate event of collateral (Bitcoin or Ethereum) liquidation, we charge a liquidation fee before returning the remaining crypto collateral to the stablecoin borrower.
How is crypto interest paid for Borrow loans?
All Borrow crypto loans have the interest paid in-kind, meaning that if you borrow USDT with Bitcoin or Ethereum as collateral, your interest payment for this stablecoin loan will also be in USDT.
The interest payment is due at the end of the Borrow crypto loan, so you don’t have to worry about making weekly/monthly payments to maintain your stablecoin loan. The interest amount and principal is taken automatically from your platform account balance when the Borrow matures. Simply have the correct amount of USDT in your account and our state-of-the-art collateral management system will take care of the rest!
Can I have more than one Borrow loan at a time?
Yes! You can have more than one Borrow crypto loan at any point in time.
As a reminder, by Borrowing crypto and using your Bitcoin & Ethereum as collateral, you qualify for the monthly LND airdrop as well. So the more stablecoin you Borrow, the more LND you receive!