Crypto Life (CL)
2 min readDec 12, 2022


Stablecoin borrowing vs crypto borrowing

What are crypto loans?

As decentralised finance (DeFi) continues to increase, so does the concept of crypto loans. So much so, that many are choosing to borrow crypto as opposed to taking out a traditional loan.

There are many reasons for this, but one of the most significant is accessibility. Let’s face it — taking out a regular bank loan is a tedious process. First, you have to provide them with an abundance of information, including your credit score, home address, proof of employment and official identification. Plus, you’re not even guaranteed to be approved, making the whole process all the more frustrating!

Instead, a crypto loan is determined by the amount of collateral you have. They’re also much more flexible, faster and have significantly lower interest fees.

Why are stablecoin loans beneficial?

On the other hand, some people find taking out crypto to be far too volatile, and so prefer to take out loans in stablecoins instead.

While crypto loans have their obvious advantages, stablecoin loans offer a range of unique advantages. Most notably, stablecoins are pegged to the value of fiat currencies (e.g. the US Dollar), meaning they are much less subject to volatility.

Not only that, but according to an article by Barron’s, stablecoins often yield around 10% on several platforms. Lenders can expand their yield income through reward tokens and other bonuses, while borrowers can use their crypto as collateral and leverage gains without the need to sell it.

Borrow against your crypto with the CL Card!

The CL card lets you access a line of credit, with rates starting from 0%. You can take out a draft in USDT, EURT and USDC while using your crypto as collateral.

There are two kinds that we offer — Cryptodraft and Stableloans.

What is a Cryptodraft?

A Cryptodraft lets you access extra funds to spend on your card without selling your assets, with interest-free spending of up to 10% LTV. You can also borrow up to 60% of your collateral value, extend your Cryptodraft, and withdraw your assets whenever you want for free!

What is a Stableloan?

Opening a Stableloan allows you to take out stablecoin assets, including USDT, USDC and EURT. Putting you in control, Stableloans allows you to choose the amount you want to borrow and for how long, and you’ll always know how much interest to pay. Your collateral will be released back to your wallet once the Stableloan is settled.

Open a Cryptodraft or Stableloan in just a few taps, while using your crypto as collateral. Plus, enjoy fast approval and full transparency with rates starting from 0% APR!

Get started now!