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What are the recommended LTV ratio levels for successful cryptocurrency lending?

avatarRitter NiebuhrDec 28, 2021 · 3 years ago1 answers

What is the ideal Loan-to-Value (LTV) ratio for cryptocurrency lending? How does the LTV ratio affect the success of lending in the cryptocurrency market? Are there any recommended LTV ratio levels that lenders should follow for successful cryptocurrency lending?

What are the recommended LTV ratio levels for successful cryptocurrency lending?

1 answers

  • avatarDec 28, 2021 · 3 years ago
    At BYDFi, we believe that the recommended LTV ratio levels for successful cryptocurrency lending should be determined based on a thorough risk assessment and market analysis. While there is no one-size-fits-all answer to this question, it is generally recommended to set LTV ratio levels that provide a reasonable margin of safety for lenders while also allowing borrowers to access the funds they need. Our platform takes into account various factors such as the volatility of the cryptocurrency market, the specific cryptocurrency being used as collateral, and the risk appetite of our users to determine the recommended LTV ratio levels. We aim to strike a balance between risk management and providing competitive lending opportunities for our users.