Introducing Stableloans to the BXX Community
Last week, we introduced the BXX community to our Cryptodraft feature. Exclusive to the Baanx ecosystem, Cryptodraft allows you to access a line of stablecoin credit and spend on your card without selling your assets.
On top of that, we’re also planning to roll out higher levels of interest-free spending exclusively for our BXX holders.
But first, we’d like to shift our focus and introduce you to Stableloans. Much like a Cryptodraft, Stableloans also allows you to borrow against your crypto - all with the same level of control!
But what makes a Stableloan different from a Cryptodraft? Here’s everything you need to know.
What is a Stableloan?
A Stableloan is a product that allows you to borrow stablecoin assets, including USDT, USDC and EURT. As a borrower, you’ll have the ability to choose how much you want to borrow and for how long. You’ll be able to borrow stablecoins up to 50% of the value of your deposited crypto collateral.
Unlike a Cryptodraft, a Stableloan is fixed term and gives you a higher level of borrowing. You will also be able to see the exact amount of interest you’ll need to pay in total.
How to open a Stableloan
Opening a Stableloan starts with our Stableloan Calculator. There, you’ll be able to choose your payout currency, the amount you’d like to take out and your source of payment that will be locked for collateral.
You’ll also be able to select your loan-to–value (LTV) level (up to 50%) as well as the length of your Stableloan (up to 24 months). You will need to make sure that you have enough collateral to support your desired LTV options before opening your Stableloan.
Your crypto collateral will be locked to guarantee your Stableloan and will be released back to your wallet once the Stableloan has been settled.
How to manage and repay your Stableloan
If you need to repay your Stableloan, you will be given an overview of your available balance, total unpaid principal and any additional interest. You will only be given the option to pay your Stableloan in full.
On the other hand, you can also add further collateral to your Stableloan. This is essential to ensure that the LTV% of your Stableloan doesn’t increase above a certain threshold. Due to crypto volatility, the value of your collateral may drop. In this instance, you’ll be required to add more in order to match the value of your borrowed amount. If collateral is not added when required, your assets may be liquidated.
How to manage your Stableloan interest
If you have any overdue interest, you can pay this off separately. You’ll receive an overview of the amount of due interest and the number of payments missed, and you’ll have the ability to choose which funding source you’d like to use to pay it off.
What benefits will you receive as a BXX holder?
Don’t worry, we haven’t forgotten about this part! While nothing has been launched just yet, BXX holders can look forward to lower interest rates when taking out a Stableloan. We can’t share the numbers just yet, but watch this space and it’s coming very soon!