A Coinbase Wrapped BTC loan (also referred to as Coinbase Wrapped BTC-backed loan, cbBTC-backed loan, Coinbase Wrapped BTC loan, cbBTC loan, crypto loan, or crypto-backed loan) is where you supply your cbBTC as collateral for a loan, usually in the form of USD (or other fiat currency), a stablecoin (such as USD), or another crypto asset. An cbBTC-backed loan allows borrowers to get liquidity of their cbBTC without having to sell it. This means they will benefit from any price appreciation of cbBTC even while they have the loan outstanding. Additionally, it can help borrowers avoid taxes which could be incurred when selling cbBTC.
cbBTC-backed loans have grown in popularity in recent years and provide crypto owners a new source of liquidity for a variety of things.
You can use your crypto loan to pay off your existing debt including including including including credit cards, student loans, or Crypto-backed loans provide a new source of liquidity for strategic refinancing.
Whether you need funds for everyday purchases like groceries, gas, or utilities or you want to make a large purchase such as a new car, down payment on a house, or family vacation, crypto-backed loans can help cover the costs.
For aspiring entrepreneurs, a crypto-backed loan may be provide the first capital to start a new business. Whether it’s product development, hiring staff, or purchasing inventory, crypto loans can be a method to access capital without a lengthy application process.
For aspiring entrepreneurs, a crypto-backed loan may be provide the first capital to start a new business. Whether it’s product development, hiring staff, or purchasing inventory, crypto loans can be a method to access capital without a lengthy application process.
DeFi lenders, usually referred to as DeFi lending protocols, are a novel concept for finance as they operate without the control of a centralized entity. Instead, they rely on smart contracts which contain self-executing code that enforces the logic of the protocol. For example, by supplying one type of crypto as collateral to a specific smart contract address, the same individual would be allowed to borrow a different type of crypto from a different address — with no credit check or lengthy application required. This innovative system allows individuals to interact with DeFi protocols in a permissionless fashion and without having to trust third-party intermediaries. Additionally, this may allow borrowers to avoid many traditional fees on loans when they borrow using a DeFi lending protocol.
There are a variety DeFi lending protocols across blockchain networks with different offerings. For instance, some offer floating-rate interest loans where the rates can fluctuate each second. These loans typically have an undefined loan term so borrowers can keep the loan out for as little or as long as they like. Other lending protocols offer fixed-rate loans with defined loan terms. DeFi can be confusing but Rocko is designed to help consumers easily navigate this new financial world and quickly access competitive rate loans from popular DeFi protocols.
Rocko is a new platform that enables individuals to easily borrow at competitve rates from DeFi protocols. Users can set up their loan in minutes and receive the funds to their account at Coinbase, Gemini, other popular exchanges, or their preferred Ethereum wallet.
With Rocko, you can compare DeFi protocols and interest rates to find the best option. Set up your loan by selecting the amount, collateral, protocol/interest rate, and where to receive the funds. Once finalized, you'll receive a non-custodial Rocko smart wallet, which automatically interacts with the DeFi protocol to complete the loan. Since the wallet is non-custodial, only you control the private key and the funds inside.
Rocko also provides a loan management dashboard and tools like sms and email alerts so you can stay on top of important metrics and better manage your loan and collateral. Learn more about Rocko on our homepage.