CoinEx announced a new feature called Crypto Loans on October 12, 2023, to provide a more diverse range of financial tools for the global crypto community. Crypto Loans, a financial service for short-term liquidity needs, allows users to borrow cryptos for trading, investment, or withdrawal by collateralizing one or more types of other crypto assets, thereby increasing the liquidity and utilization of personal funds.
In the crypto market, most users prefer borrowing loans to selling their coins, as this allows them to hold assets over the long run, awaiting potential appreciation. With Crypto Loans, CoinEx users can access more liquidity through borrowing without selling their crypto assets. They can simply collateralize their holdings and pay interest in exchange for other tokens, such as USDT.
It’s important to note that Crypto Loans differs from loans in margin trading. The latter amplifies the value of crypto assets for the purpose of making higher returns with a small principal. In Crypto Loans, on the other hand, users collateralize high-value assets for hedging and can be used to borrow popular assets or stablecoins, with a focus on trading or other arbitrage strategies.
Crypto Loans not only helps users access more liquidity and improve capital efficiency but also offers a more diverse selection of financial tools. With CoinEx’s Finance section, users can now opt for AMM, Financial, and Loans based on their financial profile and investment goals. In summary, the new feature offers the following advantages:
I. Diverse collaterals & easy operations
CoinEx supports a wide variety of collateral coins, and users can collateralize multiple coins to borrow a single coin, with simple and convenient operations, flexibly choosing from many options to match their asset portfolio.
II. Borrow and repay freely, with no additional fees for late repayment
CoinEx’s Crypto Loans has no fixed repayment period, allowing users to repay their loans at any time. This great flexibility caters to borrowing needs.
Furthermore, there are no extra charges for late repayment, and users can hold the position indefinitely as long as the loan is within the liquidation threshold. The borrowed coin can be used for trading, investment, or withdrawal, granting users complete control.
III. Higher loan-to-value ratios (LTV)
CoinEx offers higher initial collateral ratios (LTV) than many other platforms. This means that on CoinEx, users can leverage their collateral for bigger loans than elsewhere to borrow more and further improve capital efficiency.
IV. Flexible repayment methods & repayment with collaterals
Unlike other platforms, CoinEx allows users to repay their loans with collateral coins. On CoinEx, if a borrower cannot repay the loan with the coin he borrowed, he could simply pay off the debt with collaterals, instead of waiting for liquidation or seeking alternative sources, which saves a lot of hassle.
V. Low entry barrier
CoinEx’s Cryptos Loans comes with a low entry threshold. On CoinEx, all investors can access Cryptos Loans, as long as they are registered CoinEx users and have completed 2FA authentication, without any additional requirements.
CoinEx users can log in to CoinEx’s official website (https://www.coinex.com/), navigate to the [Finance] section in the top navigation bar, and select [Loans] to access Crypto Loans. Please note that this feature is currently unavailable on the CoinEx app.
The supported assets and interest rate of Crypto Loans are as follows:
I. Supported assets
II. Loan interest
One hour of interest is generated immediately upon successful borrowing. After the initial one hour, the loan interest accrues every o’clock hour going forward, and the interest is calculated ONLY on the outstanding loan balance (instead of on unpaid interest). It should be noted that the interest at the time of borrowing = loan amount * daily interest rate / 24.
Crypto Loans is designed to expand the platform’s offerings, meet financial needs, and provide users with more financial/investment options. Moving ahead, CoinEx plans to support additional cryptos for Crypto Loans, and users can stay updated on CoinEx’s announcements through its official website and SNS accounts for future updates. Since its inception nearly six years ago, CoinEx has always put users first. This global crypto exchange strives to provide superior crypto trading services for investors worldwide and meet their evolving demands for crypto finance and investment.