FINANCE MARKET INNOVATION

[MannyN]

Hey everyone,

I work on the lending side of the crypto space, specifically with fixed-rate, crypto-collateralized loans.

I’m not trying to advertise anything here; I’m trying to get a better sense of what the community actually values (or distrusts) when it comes to these products.

The structure I work with is pretty simple:
• 1-year fixed-rate loans
• BTC/ETH/SOL as collateral
• Minimal underwriting — just a soft credit check • 1% origination fee
• $5K minimum, with the ability to handle much larger loans up to 8 figures
• Liquidation-protection options to help avoid margin calls when LTVs jump
• Availability varies because some states have commission restrictions

• ⁠If you’ve used crypto-backed loans before, what made you choose the provider you picked?
• ⁠What are the must-haves? Lower rates? Custody setup? Clearer liquidation rules?
• ⁠If you avoid these loans completely, what’s the main reason?
• ⁠For those who have used services like this, what was the best or worst part of the experience?

Not trying to pitch anything. I just want to hear honest feedback from people who actually interact with these kinds of products so I can understand where the real pain points are.

Appreciate the insight, cheers!

[Darker45]

I cannot speak on behalf of the community, but I think it's the custody that troubles many more than anything else. I'm not sure how many here had funds trapped when lending platforms like Celsius, Voyager, BlockFi, and others crumbled down along with the billions of users' money, but it must be a traumatic moment to many.

Aside from low rates and fees, I think it's flexibility that's most in-demand by users. That's as far as my limited experience in small-scale loans is concerned. Flexibility in terms of term extension, interest, and collateral liquidation. But considering your high minimum and ability to offer loans in millions, yours must be institutional and therefore rigid more or less in terms of rules.