In yesterday’s tweet, Binance announced new collateral assets on BINANCE Loans. These new assets are:
ASTR is native token of Astar network. Astar network is a scalable and interoperable Web3.0 infrastructure. Because Astar Network is built on Parity’s Substrate framework, it has the potential to become a future Polkadot parachain that also serves as a scalable smart contract platform. Polkadot Relaychain does not support smart contracts. Thus, this gives Astar the opportunity to fill the gap. Scalability is one of the most important requirements for dApp developers. Ideally, developers can build any apps they want on Astar Network without worrying about scalability.
IOTX is an Ethereum token that powers IoTeX network. IoTeX is a decentralized network of users, developers, and businesses that govern and use the platform collectively. This is a one-of-a-kind blockchain network. As an EVM compatible Layer 1 blockchain, it provides blockchain benefits to smart devices, Dapps, and NFTs. In its decentralized ecosystem, IoTeX aims to ensure that individuals and businesses may own and control their data and devices. Its goal is to democratize access to machine-backed DApps, assets, and services in order to connect the physical and digital worlds and drive the new machine economy.
KNC is a native token of Kyber network. The Kyber Network is a protocol that seeks to provide liquidity to decentralized products and simplify ERC-20 token swaps. This protocol collects liquidity from many sources (reserves, exchanges, etc.) and uses it to enable instant swaps of ERC-20 tokens.
#Binance Loans adds collateral assets:
— Binance (@binance) April 14, 2022
About Binance Loans
Binance’s Crypto Loans is a unique product from the biggest cryptocurrency exchange. Users pledge their digital assets as collateral to borrow from the company. For example, if someone has Bitcoin (BTC) in their wallet but does not want to sell it, they can use the BTC as collateral to borrow another asset, such as Tether (USDT).
There are some reasons why people use crypto loans:
- Provide liquidity — crypto-assets can be held for long periods of time for higher profits, and selling them in the short term may not be optimal for some people. To avoid selling their assets, some people choose to use them as collateral for a loan that provides them the necessary liquidity.
- Hedging against financial risks – cryptocurrencies are very volatile, and crypto loans have been effectively used to hedge against future value erosion losses. For example, if an investor expects the price of an item they own to fall, they can take out a loan with the asset as collateral and use it to buy more of the asset in the future if its value drops.
- Accessibility – users can turn to crypto loans when they are unable to take a loan from a traditional credit institution. Due to a lack of credit history or because their credit scores make conventional loans expensive.
- Convenience – Unlike traditional credit facilities, crypto loan products do not have multiple requirements to meet before applying for a loan. Users of centralized crypto exchanges like Binance may be required to comply with identity verification procedures, but that’s about it. Crypto loans are faster and easier to get, making them more convenient.
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