Introducing Cryptodraft to the BXX Community
There’s a lot to discover within the Baanx ecosystem, including Cryptodraft - our new and innovative product that offers a line of credit and facilitates card spending without selling your crypto assets. Cryptodraft will be available across multiple Baanx partnerships, including the CL card powered by Ledger and Tezos Crypto Life.
On top of that, if you’re a BXX token holder, you’ll get special benefits that you won’t find anywhere else!
But let’s start from the beginning - what exactly is a Cryptodraft and how does it work?
What is a Cryptodraft?
Opening a Cryptodraft allows you to access a line of credit while using your crypto as collateral. It gives you the option to spend up to 35% of your collateral value as credit on your card. The first 10% is interest-free, while the remaining 25% is subject to a small monthly interest rate (MPR).
To receive collateral back to your wallet, you will need to repay any outstanding balances, as well as any additional interest payments.
How to open a Cryptodraft
To set up a Cryptodraft, the first step is to deposit your crypto assets as collateral. Currently, the only collateral options are BTC and ETH. There is no minimum deposit requirement, and you can deposit up to 2.5 BTC or 32 ETH.
During the setup process, you’ll be given all the relevant information to open your Cryptodraft, including the amount you can spend at 0% MPR and the amount you can spend in total. Once your Cryptodraft has been set up, it will become your primary funding source for card spending by default. However, you will have the option to choose a different option for your primary funding source.
How to manage and repay your Cryptodraft
You’ll be able to see an overview of your Cryptodraft, including the total spent, total credit remaining and your current loan to value (LTV). You’ll also have options to settle or extend your Cryptodraft, as well as withdraw your collateral if this option is available.
If you wish to settle your Cryptodraft, you’ll be given the option to either pay it partially or in full. Paying partially will allow you to choose a desired amount to repay with no minimum. You may want to choose this option if you want to reduce your LTV or have some of your collateral available for withdrawal. While you can withdraw your collateral at any time, you will not be able to take out an amount that will increase your LTV by 10% as a result of this withdrawal.
On the other hand, paying in full will allow you to repay the complete amount of your Cryptodraft, as well as any due interest. The option to withdraw all of your collateral will become available.
How to manage your Cryptodraft interest
Each time you spend on your Cryptodraft, you will accrue interest. You will be prompted when you have an upcoming monthly payment, and you’ll only be given the option to settle all of your outstanding interest payments.
What benefits will you receive as a BXX holder?
Exclusive benefits are an upcoming part of BXX’s utility that we’re excited to offer to you all!
As a BXX holder, you can look forward to higher levels of interest-free spending. This means you’ll be able to spend more on your card with zero interest! We’re also planning to introduce similar benefits for our Stableloan product, so make sure to be on the lookout for that!