USDC loans

[JohnnyDoe]

Binance has no USDC left for loans and USDT rate is 15% atm.
Are there other places that offer loans with the same conditions as Binance flexible loans?

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[Mercury]

I don't know if the loan conditions are exactly the same as Binance but maybe‌ you can check OKX , Gate.io or Bitget

 

[Mercury]

Why not borrowing on Nexo?

Once you top up, you can immediately get cash‌ from your credit line by:

• Withdrawing fiat straight to your bank account. You can choose‍ between 30+ currencies.
  
• Withdrawing USDT or USDC to your Nexo account.
  

Interest rate depends on⁠ Loyalty Tier, which is determined by the ratio between the value of your NEXO Tokens⁤ against the rest of your portfolio:

Base: No NEXO Tokens are needed; interest on your⁣ outstanding credit line balance is 15.9%.

Silver: The ratio of the NEXO Tokens in your⁢ account against the rest of your portfolio must be at least 1%; interest on your︀ outstanding credit line balance is 14.9%.

Gold: The ratio of the NEXO Tokens in your︁ account against the rest of your portfolio must be at least 5%; interest on your︂ outstanding credit line balance is 10.9% if your LTV is above 20% and 2.9% if︃ your LTV is below or equal to 20%.

Platinum: The ratio of the NEXO Tokens︄ in your account against the rest of your portfolio must be at least 10%; interest︅ on your outstanding credit line balance is 7.9% if your LTV is above 20% and︆ 0% if your LTV is below or equal to 20%.

 

[stronco]

What is your collateral?

 

[JohnLocke]

What is the business by taking USDC loans?

 

[stronco]

With both‍ of these options you can get loans on chain. AAVE / Coumpound are the gold⁠ standard for ETH. Thorchain (for BTC) come to mind. These are time tested, there are⁤ dozens of others more exotic (with maybe more attractive attributes) as well.

If you prefer⁣ centralized, Sygnum will give you about 6% rate (and can go lower for 7 fig).⁢

 

[stronco]

>Utilization rate for both are above optimal, which is worrying in terms of liquidity.

Ehhh utli ratio doesn't really matter much. Look at historical rates. You can take 40 million‌ on each USDT and USDC and it will re balance soon (more stables come in).‍ Maybe rates get pushed up for a short time and then come down.

>You can’t⁠ make partial repayments there afaik

Not sure never used it. Break it down into n-smaller⁤ ones?

 

[stronco]

Never looked into it deeply, all I can say‍ is that my buddies used it with success.

 

[stronco]

Did you sort this out? What did you end up using?

 

[platopk]

Hi, you also have the option of summer.fi‍
(previously known as oasis) loans albeit it uses wbtc as collateral
for bitcoin (which is⁠ not the same as native bitcoin) with aprox 5.5% borrow rate.
With native bitcoin you⁤ could use thorchain,
it has no interest rate, but it only allows 33% LTV with⁣ a 'novel' mechanism which for my taste it has a luna-esque flavour.
see for example⁢


https://twitter.com/x/status/1710350743285187057
and with some caveats(*)
With eth you could instead use wstETH wrapped lido staked︀
eth as collateral which compounds at around 3.7% so for example a loan in summer.fi︁ would result in a 1.3% interest. Aave allows to use stETH also as collateral (weird︂ they dont use wstETH instead, as rebase tokens have funny tax implications).

(*) there is︃ another potential issue, as its the only defi protocol
that currently allows switching from ETH︄ land to native Bitcoin and viceversa, by passing KYC, and thus when you reverse the︅ situation you could get 'tainted' btc.

Hope it helps.

Disclaimer:
Of course it is not︆ the same to hold ETH instead of stETH (or wstETH)
albeit at present the market︇ values that risk at 0%.
And wbtc instead of BTC (with a similar 1:1 peg).︈
IOU pegs work untill they don't

 

[Wellington]

You sure?

BTC is at a 14% premium‍ on thorswap with USDC... (liquidity pools).

It's a nice lil earner

You know Aarve froze some funds previously - can't remember the case⁣

 

[platopk]

Forgot to add this,
A scheme worth considering is to do︈ the following, for example using Aave Use as collateral 100 wbtc borrowing 80 wbtc at︉ 0.74% net interest (payed in wbtc).
This loan has no risk of liquidation as it︊ does not depend on the state of the market.(caveat it could spike the interest on︋ wbtc loans, but it's very rare, if you notice nobody could produce btc staking programs︌ that pay more than 2% as bitcoin is the hardest asset known)
Now sell the︍ 80 wbtc for stable coin, you just sold 80 bitcoins at market value, but tax︎ wise this is a loan.
The good:
You don't have liquidation risk and very low️ protocol (wbtc, aave) risk.
Very low interests

The bad:
you really are selling bitcoin so‌ if you are long in the asset you are out of the potential upside. But‍ if you this near the top of the cycle it would be perfect, you just⁠ sold but tax wise is a loan, and you could repay the loan around 20⁤ months before next btc halving hopefully at bargain prices.

 

[stronco]

MIM is also basically auto repaying loans btw.

 

[jesuschrist]

I would advise everyone against using Thorchain, it's basically a safer version of Luna.
It will work great until liquidity disappears from RUNE's buy orderbook.
What they do isn't even‌ loaning, they just sell your collateral to pump their coin, if you want back your‍ collateral they will dump their coin and try to buy back your collateral.

Imagine if⁠ BTC does 10x and people want back their collateral, if it happens in the beginning⁤ of the bear market they will mint and market dump all the RUNE into empty⁣ buy orders, their coin will go near 0.
They say it's safer than Luna because⁢ there is a limit cap on the minting, but what if there is a bug︀ and minting won't stop, also this limit doesn't solve the disappearing liquidity problem.

Although long︁ positions on this coin in the bull market and short positions in the bear market︂ is a good idea, but using their chain is not.

 

[jafo]

Thank you for sharing this! Good catch!

 

[Raul78]

try Nexo, it is a nice loan plataform IMO

 

[void]

maybe I missed something in this thread but I still didn't find an acceptable solution‌ and loan provider

giving up control over my BTC collateral to the hands of a‍ creditor is a deal breaker... I prefer relationship based on mutual incentives over trust in⁠ one side
anyone aware of a solution where the collateral is locked in a multisig⁤ for example?
same with margin call and topping up collateral - it's inconvenient, increases complexity,⁣ brings risk of taxable events in case of force liquidation - risk of undercollateralization can⁢ be incorporated in a higher rate and lower LTV - any products like this available?︀ fixed term (say 3 years), loan repaid - collateral released, loan default - collateral liquidated,︁ that simple

 

[12345]

Do you think nexo.com is trustworthy enough to invest quite a lot in it ?‌

 

[wonderfulboy]

Have there been any horror stories already about nexo's freezing money or other troubles with‌ them ?
how much do you plan to invest with⁠ them?