Challenges with Existing Crypto Lending Platforms

The current crypto lending ecosystem faces significant limitations that prevent users from fully utilizing their assets. Key challenges include:

  • Low LTV Ratios: Most platforms restrict Loan-to-Value (LTV) ratios, such as 50% for BTC/ETH or as low as 30% for altcoins and meme tokens, severely limiting borrowing potential.

  • High Liquidation Risks: Market volatility often leads to forced liquidations, leaving borrowers with unexpected losses and limited control.

  • Limited Rewards for Liquidity Providers: While existing platforms do offer incentives, they are typically small and fail to share significant revenue with users.

  • Limited Loan Duration: Most platforms impose strict time limits on loans, forcing borrowers to repay within a set period or risk liquidation if market conditions deteriorate.

  • Complex Navigation: Many platforms are difficult to navigate, making it challenging for users to access key features or understand the lending process.

  • Poor Support: Customer support is often slow and unhelpful, leaving users without timely solutions to their issues.

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