
CoinShares|Sep 24, 2025 12:02
🔎 What is a crypto loan?
It provides investors with an alternative source of liquidity. But how does it work, and what are the risks? Let's explore how loans secured through DeFi, CeFi and traditional lenders can provide investors with an alternative source of liquidity.
🔎 Focus on DeFi loans:
➡️ The protocol sets a loan-to-value (LTV) ratio to determine the size of the loan.
➡️ Investors can access liquidity without having to sell their holdings.
✅ Benefit: investors can access liquidity without selling their holdings.
⚠️ Risk: volatility of crypto.
Learn more: https://coinshares.com/insights/knowledge/crypto-loans-guide/?utm_source=twitter&utm_medium=social&utm_campaign=Knowledge_0925&utm_content=crypto-loans-guide(CoinShares)
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