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Bitcoin backed loans are great in a bull market because your collateral keeps going up in value. Not so much in a bear as you will have to keep adding collateral to maintain the LTV.
I had a B2X loan with Ledn where you post bitcoin and then they buy you the equivalent amount. I only did it for 10M sats back when Bitcoin was 20k and I closed it out when Bitcoin was 30k. Unfortunately they no longer offer than product to Canadians so I didn't really have a choice I wouldn't have been able to roll it over anyways. But essentially I posted 10M sats collateral and got 15M sats back.
This is key!! Must avoid liquidation but even if you do get liquidated you don’t have any debt obligation to the loan origination. While it sucks for the borrower the overall system is healthier.
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