Dear OTCBTC users,
We are pleased to announce that OTCBTC Crypto-backed Lending Service will be launched for trial at 15:00 on September 26, 2018. Users familiar with over-the-counter (OTC) trading can pledge crypto more quickly with this service, to obtain liquid funds fast.
Bitcoin is the first batch of pledged assets supported by this service, and ETH / EOS or other currencies will be successively supported depending on the circumstances.
Why do we create this lending service?
As blockchain believers, regardless of the market tendency, we are always reluctant to sell our blockchain assets to cash them out and then leave the market.
Because we are afraid that the market will rise rapidly in a few days later after we sold our crypto on the falling bear market, as a result, we have to suffer losses.
Or we fear that we have an urgent need for cash within several days sometimes but find we are full of crypto on hands and have to sell them.
The only solution to our worry above mentioned seems to be the temporary pledge of crypto.
The lending in the way of pledge of crypto and OTC trading are very similar in many scenarios. Both of them need a highly credible intermediary as the depositary of the crypto pledged, borrowers and lenders of both parties should pass KYC (know-your-customer) test, and have the trading credits of crypto circle.
So we create the Crypto-backed Lending Service for meeting the demands of users on the platform.
How to start?
- Borrower publishes an advertisement.
Suppose you want to borrow 10,000 RMB from someone else, you need to pledge the asset about 20,000 RMB which will be converted into some BTC according to the current market price.
2. Both the borrower and lender of the lending service need to pass KYC. Before using the lending service, the borrower and the lender must pass the dual KYC test, including identity verification and advanced verification, to ensure the smooth and safe lending process.
3. The lender lends money and concludes a contract.
4. The borrower pays the loan.
Click the phone button to display the virtual number of the other party.
Call this virtual number to contact the other party to make the confirmation.
5. Notices for a closing position.
What is a closing position?
Here, it means that the cryptocurrency pledged by the borrower is deducted by the platform and then transferred to the lender.
When does a closing position happen?
If a borrower fails to complete the loan repayment three days after the expiry of the repayment date, a closing position will happen. If the crypto price on the market fluctuates sharply and the price of the crypto falls to 50% of the price at the time of placing an order, moreover, the collateral is not sufficient to pledge the loan, a closing position will also occur.
How about the interest rate?
The cash lender can directly view the investment interest that will be acquired through the loan advertisement list, while the cash borrower can freely set up the interest that he/she is prepared to return when issuing a loan advertisement. The daily interest rate of the loan can be set between 0.01% and 0.1%, corresponding to the annual interest rate of 3.6% to 36%. Once the interest rate is set, it will not change, therefore, please check the interest rate setting carefully when you publish an advertisement.
Applicable users of the loan function:
1. A crypto holder who does not want to lose money to trigger close position in a Bear Market.
2. A crypto holder who has short-term capital needs.
3. A trader who has demand for allocation of a lot of capitals.
The following are the reviews from users in the recent one or two weeks:
“I will get salary a few days later, but it is time for me to repay my credit card, so I cannot make a temporary turnover and I do not want to sell crypto either. Fortunately, I soon borrowed money from this platform and then repaid it after getting my salary, which avoided the embarrassment of borrowing money from my friends around me.”
“I am doing OTC business and there always be a few days in a month, during which I need to turn over capitals. Now, as long as I have currencies, I do not need to worry about the cash on hand. This function is very convenient.”
“The interest income is excellent, much higher than the interest arising from my deposit in the bank or the interest from Yu E Bao in my Alipay account.”
“Review in one sentence: “smooth operation, super easy borrowing, and guarantee via contract.”
“This is a good product, which can not only help me to borrow money without selling crypto but also bring me a fantastic experience”.
“It is a great experience in using the lending function for the first time. Earning money even in Bear Market surprises me”.
Get Started
OTCBTC 2018/09/26 15:00 ( UTC+8 ) opens lending advertisement and trading, as well as launching promotion.
2018/09/26～2018/10/26 For lenders and borrowers who complete lending during this period will be awarded for 50 OTB, no limit.
Promotion link: Participate in Crypto-backed Lending, Non-stop OTB rewarding.
Thank you for your support
OTCBTC Team
2018/09/26
