Per the press-release made on 19 March, OKEx cryptocurrency derivatives exchange is launching a C2C loan service. It will be available via the official app, as well as via the website.
The C2C loan service by OKEx is a useful addition to the already existent OKEx mobile app. The traders will now allow themselves to loan cryptocurrency to each other. Well, specifically, it will be the USDT token, not the crypto itself, given to the borrower. However, the collateral asset for such a deal is Bitcoin. This scheme is very smart in two ways.
First, one – collateralized assets are easy to redeem, because you have the collateral available nearby. The second one is that you don’t have to swap Bitcoin for USDT to use USDT. Bitcoin will always stay with you, as well as the coin’s scarcity level. Per Jay Hao, who serves as CEO of OKEx:
“C2C loan service, in general, creates an open marketplace for matching the demand and supply on idle capital. OKEx wants to keep it as transparent as possible, unlike other players in the market, the interest rate on OKEx C2C loan service is purely governed by market competition.
The crypto-lending trend is opening up new opportunities for the community regardless of the size of their investment. In this fast-growing DeFi space, we are happy to be among the first to offer lending services in a permissionless, open and composable way.”
Transfer 200 to 1,000,000 to OKEx and Start Your C2C Loan
The OKEx exchange offers users to top up their accounts with sums ranging from $200 to $1,000,000. You can send the money and decide on whether to take or give the loans for 7, 15, 30, 60 days. The traders could customize the loan duration then, as well as set the loan fee. The fee is not controlled by the exchange, users will have to agree on 0.01%-0.1%. To sustain the transparency and decentralization, the exchange will not interfere in the negotiations between parties.
More than that, the users will have total control over what they do on the exchange. That includes the loan duration, the daily interest and so on. Borrowers will receive a reminder when their collateral exceeds or when the price per collateral falls dramatically. OKEx introduced the forced liquidation system, to avoid incidents such as the recent MakerDAO insane hack-o-drain. MakerDAO system was not ready for a sudden March 13 bear market. Thanks to a bug, one bidder was able to drain more than 1700 ETH from the users and to disappear. OKEx guarantees that the investors will be able to collect the principal, as well as the penalty.
While the promo campaign is still not over, users can sign up and enjoy commission-free trading. After the promo end, the exchange will charge both lender and borrower with a tiny fee per each deal. The fees then go to the secretive account means the fund will rise, and OKEx wants using it for client insurance when the service gains steam.
Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.