Where can one get a line of credit using BTC as collateral? \ stacker news ~bitcoin

Where can one get a line of credit using BTC as collateral?

3975 sats \ 33 comments \ @kevin 29 Jan bitcoin

Ideally whoever is providing it is a Bitcoin only company. Any ideas?

https://sovryn.app/borrow/line-of-credit

These are always way too complicated for anyone to actually understand what the hell is going on. Also a juicy 13% origination fee rate 🤯

20 sats \ 6 replies \ @ama 29 Jan

At 0% interest and for as long as you want to keep it.

10 sats \ 5 replies \ @OT 29 Jan

What kind of stable coin are you getting?

You mean its 13% origination fee and thats it forever?

10 sats \ 4 replies \ @ama 29 Jan

Yes, you don't pay any interest (0%) for as long as you want. You get ZUSD, that can be converted to others on the dex.

What I don't know is how to get fiat into your bank account (to buy a house or something) and prove it's a credit, to not incurre on a taxable event.

10 sats \ 3 replies \ @OT 29 Jan

That doesn't make sense to me. Why would someone take the other side of that trade?

I borrow 100k, I owe 113k. I pay it back in 20 years and the lender earns less than 1% PA.

0 sats \ 2 replies \ @ama 29 Jan

Because ZUSD is backed by BTC, your collateral, not by USD like the usual stablecoins. Nobody's actually lending the money, it's actually your own.

If you pay it back in 20 years, you get your collateral back in 20 years, or you could keep borrowing more ZUSD when the collateral BTC goes up in price.

0 sats \ 1 reply \ @OT 30 Jan

I'll have to look into it a bit more. Who prints the ZUSD then? Is it just the protocol or Sovryn?

Do you think there's any chance RBTC can lose its 1:1 peg?

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0 sats \ 0 replies \ @037447d9ca 30 Jan

there's also the more classic APY based https://sovryn.app/borrow/fixed-interest

52 sats \ 0 replies \ @Bitcoiner1 29 Jan

Lend by Hodlhodl & Ledn are the options that I know about it.

61 sats \ 3 replies \ @supertestnet 29 Jan

https://github.com/supertestnet/loan-shark/

10 sats \ 2 replies \ @kevin OP 29 Jan

You willing to loan me some dollarinos? :)

10 sats \ 1 reply \ @supertestnet 29 Jan

it's bitcoin only, there are no dollars

but I am willing to lend you some bitcoins which you then trade for dollars however you like (I recommend p2p, e.g. robosats)

0 sats \ 0 replies \ @kevin OP 29 Jan

it's bitcoin only, there are no dollars but I am willing to lend you some bitcoins which you then trade for dollars however you like (I recommend p2p, e.g. robosats)

Unfortunately I do not want to be on the other side of that trade pre-halving 😂

I do appreciate the offer though, would be cool to actually try it out! :)

31 sats \ 4 replies \ @KLT 29 Jan

Funny I just spoke to a friend of mine about this. The loans are only for a year or two these days I’ve heard. But not sure if that’s 100% true. Definitely something to consider in the future.

When we do buy a house in the future, I thought about a bitcoin backed loan, and then I was like maybe I’ll just save up some melting fiat ice cubes and just give them that as a deposit, ideally get a low interest rate, and use surplus capital to continue stack sats or occasionally use some sats savings to pay down the mortgage. Plenty of options I guess!

10 sats \ 2 replies \ @kevin OP 29 Jan

The only provider I've seen that does actual lines of credit is Nexo but I don't trust them enough to actually stick anything in there.

0 sats \ 0 replies \ @Fabs 29 Jan

Yeah, I've been eyeing Nexo for, like, 4 -5 years now; they still haven't sunken yet... I'd go there if I really needed a line.

0 sats \ 0 replies \ @KLT 29 Jan

Same. I feel like I’ll have more trust in something like this within the net 7 - 10 years personally.

0 sats \ 0 replies \ @kevin OP 29 Jan

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31 sats \ 0 replies \ @nullcount 29 Jan

https://bitcoinmagazine.com/guides/bitcoin-backed-loans

21 sats \ 0 replies \ @arrivederci 30 Jan freebie

Bitfinex runs a borrowing platform that is peer to peer but where they manage the matching (of borrowers and lenders) and is, in my experience, quite easy to use.

https://www.bitfinex.com/borrow/

13 sats \ 2 replies \ @hodlpleb 29 Jan

Not something I would suggest at this time. With the volatility, the odds of getting called and losing your bitcoin are risky.

If bitcoin goes to 1M+, wait for a bear market, then take that low number and borrow 10-20% of that low number. Hopefully safe then.

Look into BlockFi or Celsius if you are still interested.

How the wealthy will never sell bitcoin

11 sats \ 1 reply \ @kevin OP 29 Jan

Surely this is AI generated 😂

Who in their right mind would use BlockFi or Celsius?

687 sats \ 0 replies \ @hodlpleb 29 Jan

I put it there on purpose 🙃

11 sats \ 1 reply \ @ZezzebbulTheMysterious 30 Jan

hear me out:

Securities Based Lending at prime rates from The Bank/Brokerage account holding IBIT or other Bitcoin ETF.

There is no in-kind issuance or redemption yet, so there is no easily going from BTC->ETF->BTC, but when that happens, this will be the best way to borrow fiat against Bitcoin. Otherwise its BlockFi or Celsius all over again.

0 sats \ 0 replies \ @arrivederci 31 Jan

Investopedia article on Securities-Based Lending :

https://www.investopedia.com/terms/s/securitiesbased-lending.asp

10 sats \ 0 replies \ @Coinsreporter 30 Jan

You can get it on most exchanges. I do it with Binance

10 sats \ 0 replies \ @OT 29 Jan

If you want stablecoins hodlhodl is probably the best. If you want actual USD there's a platform called ledn

10 sats \ 0 replies \ @NOV 29 Jan

https://unchained.com/loans - currently opens to business entities.

10 sats \ 2 replies \ @kevin OP 29 Jan

https://fuji.money is a thing and you can mint FUSD... but then you have a problem, you're stuck with FUSD and have no way of getting it into something like USDT or actual currencies you can use :)

0 sats \ 1 reply \ @037447d9ca 30 Jan

lol why couln't you just dex into other token?

0 sats \ 0 replies \ @kevin OP 30 Jan

Can't find any place that will do the trade without massive fees and enough volume.