- The introduction solves a significant difficulty that short-term investors face, which is gaining access to liquidity without selling assets.
- The product contributes to the enhancement of capital usage and the introduction of a more effective model for CEX financing by combining the Earn and Loan features into a single, seamless experience.
KuCoin, a leading global cryptocurrency platform that is founded on trust, has just announced the debut of KuCoin Crypto Loan. This is the company’s first integrated Earn-and-Loan product, and it is meant to improve the efficiency of crypto assets by enabling qualified pledged assets to continue receiving Hold to Earn return during the loan duration. Users are able to pledge supported assets such as Bitcoin, Ethereum, USDT, USDC, and SOL as collateral, borrow supported assets from the same list, and manage collateral, borrowings, and risk in a single integrated position. KuCoin Crypto Loan is now available on the KuCoin App to eligible users in supported jurisdictions, and web access will be available in the near future.
The introduction solves a significant difficulty that short-term investors face, which is gaining access to liquidity without selling assets or disrupting the possibility for passive income. The KuCoin Crypto Loan allows customers to have access to funds while simultaneously maintaining the productiveness of acceptable collateral. The product contributes to the enhancement of capital usage and the introduction of a more effective model for CEX financing by combining the Earn and Loan features into a single, seamless experience.
The one-position structure of KuCoin Crypto Loan is an important characteristic of the product. Users are able to handle multi-asset collateral and borrowed funds in a single collateralized loan position, which simplifies the process of monitoring collateral, controlling loan exposure, and tracking loan-to-value ratios. This is in contrast to the traditional method of managing many isolated loans.
Additionally, KuCoin Crypto Loan includes the use of dynamic, market-driven interest rates that are updated on an hourly basis. Additionally, interest is computed and accumulated on an hourly basis. For the purpose of providing more transparent risk management, the product makes use of a three-tier collateral ratio architecture that encompasses Initial, Warning, and Liquidation levels.
KuCoin Crypto Loan represents a wider idea, which is that every new solution should improve user trust and make the digital asset ecosystem more valuable. This principle is guided by KuCoin’s Trust-First approach to product creation. Users are able to access liquidity while preserving exposure to qualifying assets thanks to the product, which supports a more smooth and capital-efficient experience. This is accomplished by integrating Earn and Loan together in a single integrated position.
With the introduction of KuCoin Crypto Loan, KuCoin has further expanded its wealth product line, which underscores the company’s Trust-First strategy to developing digital asset solutions that are user-centric, transparent, and practical. On the KuCoin app, the KuCoin Crypto Loan is presently accessible for transactions.
Disclaimer:
KuCoin Crypto Loan is currently available on the KuCoin App to eligible users in supported jurisdictions, subject to applicable laws and product terms and conditions. Users should carefully review the applicable terms, conditions and risk disclosures before using KuCoin Crypto Loan or participating in Hold to Earn, including, without limited to any risks relating to variable borrowing rates, collateral value fluctuations, liquidation, and the availability of Hold to Earn rewards.
