Binance Flexible Loan will allow users to complete loan orders by collateralizing cryptocurrencies in existing Simple Earn Flexible Product subscriptions
Binance Loans, the crypto exchange’s lending platform, announced the launch of Binance Flexible Loan, enabling users to complete loan orders via collateralizing cryptocurrencies in existing Binance’s Simple Earn Flexible Product subscriptions.
Through the Flexible Loan offering, Binance users get greater flexibility without committing to a specific loan term while borrowing cryptocurrencies. Besides, they still earn Real-Time APR rewards via Simple Earn Flexible Products.
The interest is accrued every minute based on the total outstanding loan and the prevailing borrowing rates for each minute. It will be added to the total outstanding loan amount.
Binance customers can use the Binance Loans platform to borrow up to 65% of their collateral value and use these funds anywhere. The new Flexible Loan is an isolated, overcollateralized, and open-term loan product.
Flexible loan orders will remain open as long as the borrowed and collateralized digital assets are supported by Binance Flexible Loan, and they do not exceed relevant Loan-to-Value (LTV) ratios (e.g. not liquidated).
The offer supports a wide range of cryptocurrencies to borrow and use as collateral, including BUSD, USDT, BTC, and ETH.
If the total value of users’ existing Flexible Product subscriptions does not meet the collateral requirements to apply for a flexible credit, Binance Loans will transfer cryptocurrencies from users’ Spot Wallets to Simple Earn Flexible Products to cover the outstanding collateral balance.
In late 2022, Binance introduced another crypto-lending product designed specifically for private “blue-chip” Bitcoin miners who could back their bids with physical or digital assets.