Collateral Token

Receive cryptocurrency loans by placing digital assets as collateral

Type: Collateral Token

Function: To receive a cryptocurrency loan, one type of token is used as collateral in order to borrow a different token.

Use Cases: Users may want to retain their token positions but need funds for any reason. On the Ethereum Mainnet, POA20 can be used as a collateral token with the Ethlend loan marketplace. Users can receive loans for up to 50% of the value of their collateral. ETH, DAI, TUSD and several other tokens are available to borrow.

What is Possible? It is possible to access value from your assets without having to sell them. Collateral loans provide the opportunity for investors to hold tokens while gaining funds to use for other purposes. This method of achieving liquidity also reduces taxable events.