Bitcoin Forum

Hi!
Is there a loan plattform with bitcoin as collateral without the liquidation part? Thanks

Without liquidation, it's a very risky investment for borrowers. This is why you can't find someone investing on this kind of businesses. With its very volatile price, bitcoin is not a safe asset as collateral. Not even for short period loans.
Maybe there are options that i can't find by searching google,  so you can ask in the "Lending" board of this forum.

If there is collateral there is a liquidation, you can't avoid it, otherwise, what's the use of collateral? As @coupable says it protects borrowers' investment.
In case the market is decaying and you want to secure your crypto you can add extra collateral, it decreases the Loan-to-Value, early repayment too (if the platform allows it)

Such system without liquidations wouldn't really work though. Imagine if a person took a loan of $1000 in exchange for some BTC as collateral, and for some reason BTC dropped in price by 50%. Why would that person even pay back the $1000 if the BTC he/she deposited is already worth half($500-$600)? He/she'd be more incentivized to bail and use that $1000 to buy BTC instead, and get more BTC compared to his/her deposited collateral.

Even if there is such a platform, trust me. If they lose money and people (loaners) start to default, the platform WILL force all investors to bear the burden. End of the day, even look at MakerDAO. They GUARANTEED max liquidation but guess what, when it became bad, a lot of people were maxed.


Exactly.

I was questioning the same thing couple months ago and haven't found literally anything.
Good luck in seraching
Maybe its a good time to start own bitcoin lend business  ;D

Going to stress what everyone else has said here. Totally not, there'd be no way for the other side to make money without the ability to liquidate your funds in the event that the collateral falls in value (to a pre-determined point -- maybe 120%) from what was loaned out.

Imagine the risk that the loan provider would have to take on to make your idea possible? -- They'd be giving you money (USD, ETH, and so on) when you give them Bitcoin as collateral but they can NEVER liquidate you -- so they have no way to force you to actually pay.


Horribly business model, come on folks.

I guess I am able to provide a partially liquidation free loan if you keep on topping up the collateral to ensure its value remaining 130% of loan value and I will not be having any problem to cover the interest from collateral when its value exceeds 130%

If the value of collateral falls below 130% and I am not hearing within 36 hours then liquidation process will be started.

On completion of loan tenure if you are not replying/not repaying then liquidation will take place.

Purely without the liquidation part kind of loan may be possible for hours based loans. I guess that is not into practices on this crypto space but happening on real world.