Borrow StableCoins using
your Crypto

This is a type of financial service where borrowers use crypto assets as collateral to get fiat currency or some stablecoin, while lenders provide their assets in exchange for a predetermined interest rate. It’s also possible to provide fiat as collateral to obtain a crypto loan.

Cryptocurrency lending means that loans are collateralized, so there’s no need for a guarantor or any third party. QDAO DeFi is one of the loan providers that offer permissionless, transparent and instant access to crypto loans.

Centralized lending services function like traditional finance companies. They force customers to undergo the KYC procedure and can form partnerships with other institutions. The interest rates are defined by the company.
Decentralized lending platforms, such as Maker, Compound and dYdX function on the basis of protocols and can be accessed by any user without KYC and custody. The decentralized governance system is responsible for interest rates, which can fluctuate every second according to the demand and offer on the market.

Yes, loan requests only depend on the collateral you leave. That means you can take several loans out in different currencies at the same time.

Borrowed currency can be returned at any time. If you decide to return the loan earlier, you can save on interest rates which accumulate on a daily basis.

Although decentralized lending platforms seem to be a quick fix, this is still a new direction which carries some risks. Since none of the DeFi platforms are federally insured institutions, they are not regulated by banks or governments. That means that crypto assets are not necessarily backed up by fiat assets. One needs to do their own research before working with a certain lending platform.
The borrow/loan rates on DeFi platforms are variable, which means they are corrected throughout the day and might end up being not what the user expected. Thus, borrowers need to keep tabs on their collateral to make sure it stays safe for their budget.
Another major risk is connected to flaws in smart contracts. If there are any, the capital in the system might be compromised. It might be possible to hack or attack a platform if someone decides to exploit the bugs in a smart contract.

If you manage to return the borrowed funds in time, you are not likely to face any legal issues. However, in case of complaints and problems, the parties will solve all issues under the jurisdiction of the country where the lending platform is registered.

Cryptocurrency is very convenient collateral because it can be sent and paid in a few seconds. In case of liquidations, users don’t have to undergo the tiresome process of foreclosure or bureaucracy. Besides, users can benefit from yield farming, increased APY rates and can thus grow their liquidity.

There are no maximum or minimum limits. The amount of crypto you can borrow depends on the value of the collateral.

The loan-to-value ratio defines the amount of collateral you need to provide in order to receive a loan. It only concerns collateralized loans. The collateral is kept by the lender until the loan is totally paid off.

By providing collateral for your loan, you lower the risk for the lender. This allows clients to stay confident about not losing their assets, which is why they offer the most competitive rates on the market.

In QDAO DeFi, users can leave their cryptocurrency as collateral.

If a cryptocurrency seriously falls in price during the loan, you risk having your collateral liquidated if you do not return the loan. Keep in mind that the crypto market is changing daily, as are cryptocurrency prices - they can both rise or fall.

You can pay off the loan at any time up until the liquidation risk reaches 100%. When the liquidation threshold is reached, the collateral you’ve placed gets liquidated.