In 2022, two prominent crypto platforms, Celsius and BlockFi, filed for bankruptcy protection following the fallout from the Terra Luna collapse. We learned the industry is deeply interconnected, and one company’s hardships can create ripple effects or even tidal waves elsewhere. Crypto assets put up as collateral are still owned by the borrower, so you continue to benefit if the price of the collateral appreciates. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities.
Currently, there are plenty of service providers building their blockchain applications on the Binance ecosystem. Nebeus is the all-crypto platform that you need as they have a full ecosystem for borrowing, earning, trading, and even insuring your crypto. All loans are for a maximum term of one year – with the possibility to extend the term at a higher rate if needed. Interest is automatically debited monthly, whereas you can pay the loan at your convenience while maintaining the agreed-to LTV value in your account. Based on the coin, you can choose a loan-to-value from 25% to 75%.
For example a one year $10,000 loan with a rate of 6.00% APR would have 12 scheduled monthly payments of $861. The use or access of the website or platform does not guarantee the availability of any current and/or future offer, promotion, terms, loan, or return. Additional terms, conditions, requirements, suitability, and screenings, among other restrictions, may apply at the sole discretion of SALT. SALT Lending LLC’s loans are issued pursuant to private agreements.
Next, we looked at the crypto lending platforms of these new lending platform options compared to the old ones. A rising interest rate environment could boost crypto lending yields in 2023 as rates parallel traditional finance products. Currently, crypto lending rewards lenders with annual percentage yields ranging from 1% to nearly 15%, with DeFi now offering some of the strongest returns.
Most loans offer instant approval, and loan terms are locked in via a smart contract. Binance is a well-known brand with a large selection of coins to lend or borrow. However, there have been many allegations lately that Binance isn’t as liquid as they make out.