Crypto Loans
Innovative high LTV loans using native Basis assets as collateral
Borrowing Against Your Basis Tokens
Basis's integrated lending platform offers a unique and flexible way for users to access liquidity (in USDC) by using their existing Basis Token holdings as collateral. A key innovation is the potential for high Loan-to-Value (LTV) ratios with significantly reduced liquidation risk compared to traditional crypto lending platforms, especially concerning price volatility of the collateral.
Loan Terms and Loan-to-Value (LTV) Ratios
Loan Term: Users can select a fixed loan term, typically ranging from 10 to 400 days.
Collateral Accepted: Any Stable+ or Floor+ Basis Token held by the user.
Loan Currency: Loans are disbursed in USDC (ERC-20).
LTV for Stable+ Tokens: Up to 100% LTV based on the current market value of the Stable+ token collateral. Since Stable+ token prices are designed not to decrease, this offers a high degree of confidence.
LTV for Floor+ Tokens: Up to 100% LTV, but the maximum loan amount is calculated based on the token's current floor price, not its potentially higher fluctuating market price.
Max Loan Value (Floor+) = Number of Floor+ Tokens Collateralized * Current Floor Price of that Token
Loan Fees
Origination Fee: A one-time fee of 2.5% of the total loan value, charged at the time of loan origination or extension.
Daily Interest Fee: A fixed daily interest rate (e.g., 0.005%, subject to change by platform governance). This interest is typically paid upfront for the entire selected loan term at the time of origination.
No Liquidation Risk from Collateral Price Depreciation
For Stable+ collateral, since the token's price cannot decrease, the value of the collateral will not drop below the loan amount due to market volatility.
For Floor+ collateral, since the loan value is based on its "rising floor price," and this floor price cannot decrease, the loan remains protected against liquidation caused by the market price of the Floor+ token falling (as long as it stays above or at the floor). Liquidation only occurs if the loan is not repaid or extended by its maturity date.
Loan Stacking Potential
Users can potentially take out multiple loans. For example, a user could borrow USDC against their Basis, use that USDC to purchase another Basis Token, and then use that newly acquired Basis Token as collateral for a second loan. This should be approached with caution, understanding the cumulative fee obligations.
Loan Extension with Potential Cash Out
Borrowers have the option to extend their loan term before the maturity date, typically for up to an additional 1000 days.
If the collateralized Basis Token has appreciated in value (for Stable+) or its floor price has risen (for Floor+) since the loan origination, the borrower may be able to increase the loan principal up to the new maximum LTV of the appreciated collateral.
This can result in a "cash out" disbursement to the borrower: Cash Out = New Max Loan Value (based on appreciated collateral) – Current Outstanding Loan Balance – Applicable Origination & Interest Fees on the new total loan value for the extended term.
Example Loan (Stable+ Collateral):
Liquidation Process (At End of Loan Term)
Liquidation occurs only if a loan is not repaid in full or extended by its scheduled maturity date.
The smart contract will automatically initiate the sale of the collateralized Basis Tokens on the DEX.
The proceeds from the sale are used to cover the outstanding loan balance (principal + any accrued unpaid interest/fees, though interest is typically prepaid).
Any remaining value from the collateral sale after the loan is fully repaid is returned to the borrower's wallet.
A liquidation fee (e.g., 10%, subject to platform governance) is charged on this remaining collateral balance before it is returned to the borrower. This fee does not apply to the portion of collateral used to repay the loan itself.
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