What Is SALT Blockchain-Based Lending?
SALT (Secured Automated Lending Technology) is a platform enabling users to secure loans using cryptocurrency as collateral. Founded in 2016 by Bitcoin enthusiasts, SALT bridges the gap between digital asset ownership and liquidity needs.
Key Features
- Crypto-Backed Loans: Borrow against Bitcoin, Ethereum, and other major cryptocurrencies.
- Flexible Terms: Loan durations of 12, 36, or 60 months.
- No Credit Checks: Eligibility hinges on collateral value, not credit scores.
- Interest Rates: Range from 8.95% to 14.45%, depending on loan terms and LTV.
How SALT Lending Works
- Membership: Buy SALT tokens to join the platform.
- Collateralization: Transfer crypto assets to SALT’s secure wallet.
- Loan Disbursement: Receive funds in fiat (e.g., USD) via bank transfer.
- Repayment: Make periodic payments; reclaim collateral upon full repayment.
Supported Cryptocurrencies:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Stablecoins (USDC, TUSD)
👉 Explore crypto-backed loans for flexible financing.
Risks and Requirements
Loan-to-Value (LTV) Triggers
- 75% LTV: Warning issued.
- 83.3% LTV: Margin call (48-hour window to adjust).
- 90.91% LTV: Automatic conversion to stablecoins (+5% fee).
Example: A $100K loan with $155K BTC collateral starts at 65% LTV. If BTC’s value drops to $110K, LTV rises to 91%, triggering stabilization.
Benefits of SALT Loans
- Retain Asset Ownership: Profit from crypto appreciation while accessing cash.
- No Sale Tax Events: Avoid capital gains taxes by not selling assets.
Ideal For:
- Long-term HODLers.
- Businesses seeking liquidity without liquidating crypto.
FAQs
1. What happens if my collateral’s value drops?
A margin call requires additional collateral or loan repayment to restore LTV below 83.3%.
2. Are SALT loans available globally?
Yes, but compliance with local AML/KYC laws is mandatory.
3. How does SALT handle crypto volatility?
Automatic stabilization converts collateral to stablecoins if LTV exceeds 90.91%.
4. Can I earn interest on collateral?
No. Collateral remains locked until loan repayment.
Final Thoughts
SALT offers a unique solution for crypto holders needing liquidity. However, market volatility demands careful LTV management.
👉 Learn more about crypto collateral and mitigate risks effectively.
Disclaimer: Cryptocurrency investments involve risks. Consult a financial advisor before proceeding.
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