Borrow. Put your crypto down as collateral and borrow stablecoins
For those who need to get some extra money for temporary use without selling crypto, we've added an instant crypto loans option. The built-in partner solution to borrow stablecoins for any purpose without complicated checks and paperwork allows using cryptocurrencies as collateral towards a cryptocurrency-backed loan for 10% APR (annual percentage rate).
How do crypto loans work
To get loan users to send their crypto as collateral, and our partner then lends stablecoins to them at a certain interest rate. You can use crypto as a collateral asset to receive 50% of the LTV (loan-to-value) in stablecoins. It will be held safely and returned to you as soon as you repay your loan. We'd better do a list of benefits:
- You can get your collateral back anytime. In order to do that, you have to make your loan’s repayment. It consists of the amount lent and the accumulated APR counted monthly during your loan’s period. After your payout transaction is confirmed, your collateral will be sent back to you in 10-15 minutes.
- No additional fees for loans longer than 30 days. For the short ones, there are $50-100 fees (depends on the collateral currency).
- The annual fee is charged at the beginning of each month. You can easily check the total amount of the loan, including all the fees, in your loan details in the Loan tab.
- Borrow as much and as often as you want. There’s no real limit as long as you’re willing to post the collateral.
- We really care about comfort loan management and we strive to provide you important information regarding your collateral as soon as possible. We'll notify you by SMS at least three times before your collateral is sold due to the reached low point rate. Your loan is monitored every moment of every day.
Get a loan in three easy steps
You can use this option in your Guarda Wallet on web and desktop platforms. Launch the app, open the Loan tab and calculate your loan using different collateral options. You can check loan terms, annual interest rate, price down limits, and fees after setting a collateral amount and the currency you want to borrow.
- Select your payout address and collateral amount ($100 or more) and confirm the operation. After sending, you will see a confirmation page with transaction details and will be able to connect notifications by phone number. We really advise you to turn notifications on at this point because that is the quickest way to receive important information about the rates and status of your loan. We will notify you if your loan reaches each of the three limit zones, or if your collateral has been sold. Seriously, no spam!
- As soon as the collateral is sent and confirmed in the network, you will receive the loan amount to your payout address in a few minutes without any additional checks. Both outgoing and incoming transactions will be also seen in your History tab.
Start spending! Use your loan as long as you want. We will just draw your attention to the rate of your collateral currency and your loan status in time by SMS.
To check loan details use the Loan tab. Tap the loan on the list to connect notifications, change your phone number. All the outgoing and incoming loan transactions are always available to check in the History tab.
To pay off your loan tap the Pay off loan button, select an address you want to use for paying / as a payout one, and an address you want to get the collateral back to. After confirming the operation, you will receive your collateral within 10-15 minutes.
All of your loans will be displayed in the Loan tab:
Why is it important to turn notifications on?
Let’s explain in more detail in which cases you’ll receive SMS from Guarda Wallet. There are four currency rate zones for your collateral. If the notification feature is enabled, you’ll receive a message each time your collateral reaches one of the following zones:
- yellow zone— the rate of the collateral has dropped by 10%
- orange zone— a 25% depreciation of the collateral currency rate
- red zone— a devaluation of the collateral has reached 35%
- liquidation zone— a 45% drop since the collateral currency original rate
Do not worry about the bunch of SMSes if the collateral currency is so volatile that its price goes up and down frequently. You’ll only receive a notification if the collateral currency rate has dropped from a green zone to any other. For example, if the rate is in the green zone and then it suddenly devalues to the yellow zone, you get an SMS, but you won’t be notified if the rate jumps between the yellow and green zones.
Here is our guide on YouTube:
How quickly can I get a loan and get my crypto back?
The average period of giving loans and releasing collaterals is 5-10 minutes, depending on how fast our partner receives your deposit. Kindly note that the current state of the network and the network fee size can affect the transaction speed. For your comfort, we're constantly checking the average fee amount.
Will the APR change during the loan time?
The annual rate of interest is 10%. This percentage is fixed, it will not change during the whole process. Remember, Guarda Wallet is only an interface, and there are no fees added by our service — it is free.
What if my phone number will be spammed or will go outside of your base?
There is no way for it to be possible. As you already know, our team (and so all of our partners) is especially careful about any sensitive data and access. Your phone number will always be protected and will only be used for important notifications. Remember, you can change the notification settings at any time after taking the deposit.
What if the collateral’s currency rate changes after I get a loan?
The collateral’s currency rate doesn't affect the amount of the loan buyback at the time of closing. You will receive the exact amount of collateral for the exact amount you loaned (+ accumulated APR). It doesn't matter if your collateral currency's rate goes up or down — it doesn't affect the amount you borrow. In fact, after your loan is repaid you get back the exact amount of collateral for the exact amount you borrowed before (+ accumulated APR).
What can happen with my collateral?
Our partner carefully keeps it safe for the whole period. Although, if the rate of the collateral currency reaches the LP(liquidation price), the collateral will be automatically liquidated and the loan will be closed. It is impossible to return the collateral after liquidation – that’s why you will receive a notification when the current rate reaches any risk zone or the liquidation price.
What happens when I deposit my collateral?
After your collateral deposit transaction is successfully confirmed, our partners process your funds through the automatic risk management system. A simple check may be possible if the system notices anything uncommon — this helps to reduce scams and fraudulent activities in the crypto world, and it is important to understand that if you encounter a check. After the successful check, if it is needed, the loan will be transferred to the wallet you’ve selected at the start. Then, after your funds have reached you, your loan becomes active. As a reminder, it can be active for as long as you’d like. Just keep in mind that you're accumulating the APR the whole time your loan is active, and it needs to be paid at the end when you'll repay your loan and get your crypto back.
How is my collateral stored?
All the funds are stored in special wallets, and private keys are put in secure storage that can be accessed only by several IP addresses and through a VPN connection. Private keys for all the wallets are renewed every month. The risk control system checks all wallets’ balances every second.