In the evolving world of cryptocurrency, staking and lending have emerged as powerful tools to maximize asset utility. Bitget's staking and lending platform allows users to collateralize their crypto holdings (e.g., Token A) to borrow other cryptocurrencies (e.g., Token B), enhancing capital efficiency without relinquishing ownership of the pledged assets.
Key Features:
- Fixed Interest Rates: Unlike volatile DeFi lending rates, Bitget offers stable, predictable costs.
- No Gas Fees: Eliminates the complex chain operations and fees associated with DeFi platforms.
- Flexible Use of Borrowed Assets: Funds can be traded, invested, or withdrawn freely.
- Over-Collateralization: Mitigates risk by requiring collateral value exceeding the loan amount.
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Understanding Loan-to-Value (LTV) Ratio
The LTV ratio is a critical risk metric in crypto lending, calculated as:
LTV = Loan Value / Collateral Value × 100%
Bitget implements three risk control tiers based on collateral type:
- Initial LTV (e.g., 65%): Determines maximum borrowable amount.
Example: Pledge $1,000 BTC → Borrow up to $650 USDT. - Margin Call LTV: Triggers alerts to add collateral when breached.
- Liquidation LTV: Automatic asset sale occurs if this threshold is crossed.
Bitget vs. DeFi Lending: A Comparison
| Feature | Bitget Staking/Lending | DeFi Lending |
|---|---|---|
| Interest Rates | Fixed-term, stable | Highly volatile |
| Accessibility | No external wallet required | Requires on-chain operations |
| Fees | Zero gas fees | High gas costs |
| Risks | Operational risk only | Smart contract/oracle vulnerabilities |
Supported Cryptocurrencies
Bitget accepts BTC, ETH, USDT, and others as collateral. Note:
- Borrowing the same asset pledged is prohibited (e.g., no BTC-for-BTC loans).
- Minimum loan: 200 USDT equivalent.
FAQs
Q: How is interest calculated?
A: Interest = Loan Amount × Daily Rate ÷ 24 × Borrowing Hours. Rounded to the nearest hour.
Q: What happens during liquidation?
A: Collateral is sold incrementally until LTV stabilizes. A 2% fee applies to liquidated amounts.
Q: Can I avoid liquidation?
A: Yes! Deposit additional collateral or repay part of the loan to reduce LTV.
Q: How do I borrow crypto on Bitget?
- Navigate to Bitget Staking/Lending.
- Select asset, terms, and collateral.
- Confirm loan details and receive funds instantly.
👉 Start Your Crypto Journey with Bitget Today
Note: Always monitor your LTV to minimize liquidation risks. For optimal security, diversify collateral and maintain a conservative borrowing ratio.