Here’s How to Unlock Instant Cash from Your Crypto Without Selling Powered by Clapp Finance

Clapp Finance is built on the idea of traditional loans, but with the flexibility and advancements of cryptocurrency and blockchain technology. As a major financial space, crypto assets as a lending opportunity have gained significant popularity, even among mainstream investors. Platforms like Clapp Finance, which offer this service, allow anyone to get instant capital without selling their crypto assets.

For Clapp Finance, it goes beyond crypto-to-crypto loans; you can get traditional currencies without selling your crypto asset.

This article covers Clapp Finance’s lending products and how you can withdraw cash from the platform with your crypto assets, without selling them.

Offering financial leverage with on-demand capital

Loans can be used in different ways: to settle another debt, start a business, or solve a pressing real-life need. For whatever reason you need a loan, a lending service strives to meet your needs in the simplest way. As an investor, merchant, or regular user, crypto loans are a means to obtain capital. The best crypto loans are ones that enable access to this capital whenever you need it, that is, on demand.

With a source of on-demand capital, you can make your financial plans with more freedom and explore ways to boost your income with loans. For instance, you can use your Bitcoin as collateral on Clapp Finance and obtain a USDT loan. This way, you gain access to readily usable capital while maintaining your exposure to the Bitcoin market, which is appreciable.

Crypto-to-Cash: Clapp Finance’s Primary Loan Structure

Clapp Finance offers revolving Crypto credit lines. Credit lines are a contrast to fixed loans. They allow you to obtain a borrowing limit and withdraw at any time. Credit lines are a flexible lending structure; borrowers provide collateral, open a credit line, and maintain it over time. Provided they don’t get liquidated or borrow beyond their limit, this line stays open, and they can withdraw funds at any time.

A unique advantage of Clapp Finance’s credit line is the direct access to cash. While most crypto lending platforms only allow you to borrow another cryptocurrency, Clapp Finance allows users to borrow the Euro. You can select any of USDC, USDT, or EUR when applying for a loan on the platform.

With the SEPA Instant integration, you can easily withdraw your Euro to your local bank account in minutes. Clapp Finance enables easy ramping on and off crypto. It opens the door to traditional investors seeking to leverage capital in crypto.

Collateralization, LTV, and interest rates on Clapp Finance

Clapp Finance supports over 16 crypto assets as collateral for obtaining credit. These include Bitcoin, Solana, Ethereum, XRP, Cardano, DogeCoin, and more. For each asset, it specifies an LTV (Loan-to-Value) ratio, which defines how much loan you can obtain relative to your asset. For an asset with 50% LTV, you can obtain loans that equal half the value of your collateral. LTV ratios vary based on volatility and liquidity. Stablecoins usually have the highest LTV ratios as a result.

An advantage of the credit line product is its flexible interest rates. When the LTV of your collateral asset is Zero, Clapp Finance doesn’t charge any interest on unused funds. That, it, amounts approved but not withdraw does not attract any interest. For used funds, the interest rate varies according to the asset’s. See detailed interest rate structure. Borrowers are expected to repay the borrowed amount plus the interest.

Liquidation and loan health on Clapp Finance.

The liquidation terms on Clapp Finance are similar to those of other lending platforms. Collaterals are liquidated when they decline at an unusual rate. However, as a revolving credit line platform, the structure is markedly different and more favorable for borrowers. Your liquidation terms are calculated according to the amount withdrawn, not the total approved amount. Therefore, the risk of liquidation is lower if you use only a portion of your approved loan.

Also, you can repay your loans as you go, to maintain a good loan health and keep your Credit line open.

Obtaining a loan from Clapp Finance

Getting instant cash on Clapp Finance is straightforward.

As a custodial platform, you must register for an account and complete verification to borrow from Clapp Finance.

Once your account is approved, you can proceed to the borrow section to borrow cash or stablecoins with your crypto asset. If you are borrowing in euros, you can withdraw funds directly to your bank account with SEPA Instant. Stablecoins can be withdrawn to your crypto wallet.

With the mobile application available for Android and iOS devices, you can borrow from Clapp Finance while on the go.

Conclusion: Should you borrow with crypto from Clapp Finance?

Put simply, Yes. Clapp Finance is a regulated crypto lending platform with features that simplify crypto and cash lending. It is a good option, especially for anyone exploring the most flexible way to borrow cash with crypto. The basic Credit Line structure is flexible enough to accommodate creative lending strategies. However, we recommend a good understanding of LTV ratios and liquidation before using Clapp Finance to get instant cash with crypto.