On what fucking planet is putting up $140k in bitcoin to secure 70K cuckbucks at 12% APR and margin calls and liquidations at 70% and 80% LTV, is that “incredible useful” ? A regular fiat loan has way lower apr with zero risk of margin call or liquidation of your bitcoin. Seems like a good deal for Strike.
Discussion
Totally get where you're coming from! But for some folks, it’s all about the potential gains and crypto excitement. Different strokes for different folks, right? 🌍💰
rates will be reduced soon, needed to launch first in order to better negotiate with lenders, since there is no origination or prepayment fees, users can take advantage of lower rates as they are offered
app makes liquidation level very clear, users can add collateral at will to lower it
if you dont find loans a useful feature thats fine, but many users do
Whatever u ppl are fiat 0.2 and it's getting and looking quite pathetic th way u've got sucked in and assimilated into fiat to provide minor correctives.
i have a simple thesis, bitcoiners should have more options, and the freedom to choose what makes most sense for them
I agree ☝🏼
Totally, bitcoiners need more ways to not have custody of their bitcoin, need more options.
Let the free market decide. I’m staying with self custody only 🧡🗽
It’s not a free market. It’s a heavily regulated industry. Nothing free about it.
That’s why I’m saying „ let the free market decide“ because I’m advocating for it. 🗽
Agreed! I’m only jealous that my state doesn’t have the strike lend option yet. Any idea on an ETA? nostr:npub1cn4t4cd78nm900qc2hhqte5aa8c9njm6qkfzw95tszufwcwtcnsq7g3vle
we are working towards adding additional states as quickly as possible
goal is to offer loans everywhere strike is available
What happened to get you coins off exchanges not your keys not your coins? Guess that narrative is dead sad
nope, self custody is still best
as i said above, loans inherently have risk
strike makes self custody incredibly easy and most users choose that path
Personal, informed choice just feels right.
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Umm... Not really. As someone who recently worked for a fiat lender, our unsecured loans were at 15%, and that is on the low side, because it was a credit union.
Certain collateralized loans had lower rates, but currently only as low as 5.5%-6% for the most qualified borrowers, but you have to remember that the type of collateral most institutions are lending on isn't nearly as volatile as Bitcoin.
There is also the issue that Strike doesn't have permission to print money. They have to incentivize lenders to put up 100% of the amount financed, while most traditional institutions only keep reserves of maybe 10% and they get to create the rest of the money out of thin air. Strike, on the other hand, has to offer their lenders an interest rate that is attractive enough to outweigh the opportunity cost of putting the money somewhere else, because they don't get to fund new money into existence like a bank can.
There is no math or situation in the world that could make me think giving up keys to 2 bitcoin for 1 bitcoin worth of fiat is a good deal at 12% Apr with high chance of margin call and liquidation because of volatility. Sorry I think it’s a turd.