Collateralized borrowing is very popular in traditional finance. Many different kinds of assets or securities can be pledged in order to take out a loan. These assets can include real estate, cars, and other financial assets. In Tokenomy, we lend against your crypto assets.
The amount of collateral borrowers need to pledge is determined by the loan’s LTV (loan-to-value) ratio. Tokenomy offers an LTV of up to 60%. Based on our extensive risk modeling, we determine that this is a sufficiently conservative rate, which helps our clients limit exposure to triggering events when the market faces volatility. Click here to learn more about Tokenomy’s LTV calculations.