Loan

Decentralized USD

Loan

Decentralized USD loans.
Borrow against USDD.

Empower Your Crypto Journey with Cropty's Flexible Financing Solutions

What is Decentralized USD?

USDD is a stablecoin issued by the TRON DAO Reserve. It’s pegged to the value of the US dollar and aims to provide a reliable, decentralized cryptocurrency for blockchain transactions. USDD can be used for payments, trading, staking and as a value store.

USDD is backed by a number of cryptocurrencies, including Bitcoin, Ethereum and TRON. To ensure stability and security, the reserve is over-collateralized, meaning that it holds more assets than the amount of USDD currently in circulation.

How do loans backed by USDD works

Cryptocurrency loans offer a simple choice for borrowers as well as for the counterparties. The former can get USDT loans while they use their crypto to back up the debt, thus the latter can maintain possession of their digital assets. The usual delay of credit checks and voluminous paperwork is eliminated. The transactions are faster and less costly.

For instance, a lender can take his digital currency, e.g., Decentralized USD (USDD), and deposit it into a tailored account on the Cropty platform. The appointed custodian manages the contractual relationship between the borrowers and the lenders, thus ensuring a safe encounter. They function as reliable intermediaries, thus enabling the protection of the interests of both parties.

As the borrower can take advantage of the loan offer without selling the cryptocurrency, the strategy is to be highly appreciated during the crisis in the market, thus helping the borrower avoid losses. The loan program not only makes the borrowing experience easier but also gets rid of the need for credit checks.

The lenders have the possibility to earn the interests on the money they have invested as loans are gradually repaid. It enables them to make a profit off their crypto holdings. It is a win-win situation where the borrowers get access to loans and the lenders get their returns from the amounts they contribute.

Cropty's platform is responsible for the completions of the orders between the borrowers and the lenders while using the blockchain technology to assure the security of the transactions without the presence of middlemen. This reduces the risk of fraud and generates a safe lending environment.

Decentralized USD Loan Calculator

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USDT

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Interest rate

18% per year

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Crypto Loans explained

In our video, we take you on an exciting and informative journey into the realm of crypto lending and borrowing on the Cropty platform. Discover how this revolutionary system works, learn how to take out a loan, and explore the seamless process of loan repayment. Packed with valuable insights and tips, this video is your ultimate guide to harnessing the potential of crypto credit.

How to get a loan on Decentralized USD? Borrow usd against Decentralized USD on Cropty

The process of getting an Decentralized USD cryptocurrency loan is quite simple. First, you need to create your account on Cropty, a platform that offers Decentralized USD cryptocurrency lending services. Then, you need to provide your USDD as collateral and specify the loan amount you want to borrow. The platform then evaluates your collateral and gives you access to the required amount of Tether USDT.

Your creditworthiness is determined based on the value of your collateral, making the process of getting a cryptocurrency loan fast and convenient.

However, it is important to remember that Decentralized USD cryptocurrency loans are not without risks. In case you default on the loan, your collateral can be seized. Therefore, you should carefully assess your repayment capacity before taking out a cryptocurrency loan.

How to get a loan on Decentralized USD? Borrow usd against Decentralized USD on Cropty

To authorize an Decentralized USD Crypto Loan, you will need to go to Features tab → Loan section → Borrow button

Choose the required loan amount the terms and conditions of the crypto loan, and apply for it by confirming it with a code from 2FA - application or E-mail or Telegram-bot.

Decentralized USD lending

The popularity of borrowing with Decentralized USD has exploded among the crypto community, who want quick cash access. By taking out decentralized USD loans, users can unlock the value of their decentralized USD holdings and thereby achieve immediate cash flow without liquidation of their investments. Such USDD loans are pegged on the value of the borrower's decentralized USD, thus constituting a reliable lending framework. As a result, they are now free to take out USDD loans for any purpose, be it for the payment of bills, investing, or even starting a business. This pioneering USDD borrowing method has opened up untapped avenues for people to access funds from their Decentralized USD holdings for vital usage.

USDD as a collateral

DeFi USD, often called USDD, is a progressively popular choice for crypto-backed loans. Decentralized USD loan channels empower users to have the discretion to take a loan in USDD or to deposit their USDD in order to make a profit. This mechanism allows folks to grab a loan against their USDD assets, therefore, providing them with instant access to money without going through the process of selling their assets. In addition, borrowers may get a loan in USD using USDD, which is a great tool for both accessibility and liquidity. So, what is the working principle of this mechanism? In simple terms, users pledge their USDD as security; the loan amount is calculated based on the value of the collateral. These crypto payday loans are a viable option for people in need of a quick cash injection while they decide to leave their Decentralized USD portfolios untouched.

Loans secured by Decentralized USD offer competitive interest rates.

At Cropty, we have great consideration for the fact that the attractive interest rate plays a very important role. This is the reason we lend in cryptocurrency at a very attractive rate of only 9%. In case you need money for a private or business venture, our low-interest loans represent a less expensive option to have cash access without selling your precious cryptocurrencies.

One of the main characteristics that differentiate Cropty's collateral crypto loans from others is the collateral process. If the borrower does not repay, the USDD collateral remains with Cropty, while the borrower holds the Tether USDT that was issued to him/her. That way, an entirely fair and just method of loan recovery is at work, which helps both parties to the transaction.

In order to lower the risk of Dcentralized USD going down in value, Cropty decides an automatic liquidation system is the best measure. If the worth of the collateral falls under a certain limit, the loan that is backed by the collateral concerned will be immediately liquidated. This move made ahead of time keeps the lender and the borrower safe from losing a share of their assets during the market downturn.

Even so, Cropty makes everyone take the big swing in favor of the users in terms of transparency and simplicity. Through our user-friendly platform, our users can easily monitor the status of their loans. Additionally, borrowers who have allowed their debt to go into default will be able to use the funds to increase the collateral, actually pay off the loan early, or even discharge the loan by repaying the borrowed amount plus the interest accrued.

If you are interested in getting a crypto loan, Cropty offers you the possibility of getting a coin loan immediately. The use of Decentralized USD as collateral will allow you to obtain funds and get Tether USDT in return. Our crypto-backed loans are designed in a way that makes your solutions fast and easy.

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Why choose Decentralized USD Cropty Loan

Take advantage of limitless possibilities: Get any amount at any time with our unbeatable cryptocurrency line of credit.

Easy access to funds

By leveraging your crypto assets as collateral, you can quickly obtain loans without the need for extensive credit checks or income verification, making the process more efficient and accessible.

35+ Currencies

Choose your collateral from over 35 cryptocurrencies and borrow instantly from USDT.

No inspections!

Cryptocurrency loans allow you to access credit without checking your credit history.

Interest - hourly

We charge interest on the loan hourly. However, during the first hour after taking out the loan, you have the opportunity to repay it without any additional fees. This sets us apart from our competitors.

Lower interest rates

Because cryptocurrency loans are collateralized, lenders often offer lower interest rates than traditional unsecured loans, making them more cost-effective for borrowers.

Flash approval

Receive funds in the same minute without spending more than 3 taps

Maintain ownership of your crypto

With crypto-backed loans, you retain ownership of your digital assets while using them as collateral. This allows you to benefit from potential market growth and regain full control of your assets once the loan is repaid.

FAQ

What is Cropty Decentralized USD Crypto Loan?

Cropty Decentralized USD Crypto Loan is a secure, overcollateralized, and flexible loan product. Users can take loans by pledging their crypto assets as collateral. With Cropty, you don't have to worry about rehypothecation since we don't lend out your collateralized crypto to others.

How do I pledge my assets and start borrowing with Cropty Decentralized USD Crypto Loan?

To start, choose the crypto you'd like to pledge as collateral and the amount you'd like to borrow. Ensure you have sufficient crypto assets in your account to cover the required collateral. Once the process is complete, your collateral will be locked, and the loan will be transferred to your account.

What is LTV, and how much can I borrow from Cropty Decentralized USD Crypto Loan?

LTV (Loan-to-Value) represents the ratio between the value of the loan plus accrued interest and the value of your collateral. The LTV percentage determines how much you can borrow based on the collateral you pledge. For example, with a 50% LTV, if you pledge 1,000 USDT, you may borrow up to 500 USDT worth of assets.

Are there limits to how much I can pledge and borrow?

Yes, there are limits for each cryptocurrency. The maximum amount you can pledge or borrow depends on the specific crypto and may change periodically.

What is loan liquidation, and what is the liquidation LTV?

Loan liquidation occurs when the current LTV exceeds the liquidation LTV, which may happen if the collateral's value decreases or the loan's value increases. If liquidation occurs, you may lose some or all of your collateral.

What happens when a loan is liquidated?

When liquidation occurs, the outstanding loan amount will be repaid using the equivalent value of collateral. A partial liquidation happens when the liquidation doesn't fully cover the outstanding loan, and a full liquidation occurs when the entire loan is repaid using the collateral.

What is a margin call?

A margin call is a warning issued when your collateral-loan pair position reaches its margin call LTV. You can take action by adding more collateral or reducing the outstanding loan to lower the LTV.

Will I be notified in the event of margin calls or liquidations?

Yes, Cropty will send notifications via email and SMS in case of margin calls or liquidations. However, timely delivery of these notifications cannot be guaranteed.

What interest rate applies to my loan?

Cropty provides transparent interest rates for each cryptocurrency. Please refer to the platform for up-to-date interest rates.

How is interest accrued for my loan positions?

Interest accrues based on the total outstanding loan amount and the prevailing APR. The interest accrued is added to the total outstanding loan.

How do I repay my loan or adjust my LTV?

Use the 'Repay' or 'Adjust LTV' options in your account to repay loans or adjust collateral, respectively. You can only repay your loan using the same cryptocurrency you borrowed.

Which cryptocurrencies can I pledge or borrow on Cropty Crypto Loan?

Cropty Crypto Loan accepts a variety of cryptocurrencies as loanable and collateral assets. The list of available cryptocurrencies is updated periodically, so please refer to the platform for more information.

What can I do with the cryptocurrencies borrowed from Cropty Decentralized USD Crypto Loan?

You can use the borrowed cryptocurrencies for various purposes, including trading, investing, or withdrawing from the platform. The collateral you pledge remains with Cropty as security for the repayment of your loan.

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More coins

From Decentralized USD to altcoins, our diverse range of supported assets provides you with the freedom to choose the perfect collateral for your loan