Bye, bye banks: how we cut out the middlemen to put you in charge of your loan
Borrowing used to be about banks, loan sharks, and sky-high interest rates.
But not anymore — we’ve turned that old way of thinking on its head. Now, you can borrow money on your own rates and terms.
Yes — you set the amount, interest rate, and length of your loan, not some greedy banker in an expensive suit.
We’ve taken the pain out of borrowing by removing middlemen, paperwork, and credit checks.
We’ve taken the pain out of borrowing by removing middlemen, paperwork, and credit checks. Instead, we match you with people who will invest in you on your terms. It’s called Constant P2P lending — an affordable, easy way to borrow without the headaches.
Here’s how it works.
Getting a loan
- Do you own bitcoin or ethereum?
- Do you have a bank account?
- Do you have a device with an internet connection?
Answer yes to all three and you can borrow through Constant P2P lending.
We never do credit checks, hard, soft, or otherwise. We don’t care how much you’ve borrowed in the past, or whether you repaid late or not at all. With us, you’re always approved.
Most importantly, you decide the rates and terms. Go with the market or choose your own. Borrowing at market rates tends to find you a quicker match, but the choice is yours.
You can be matched in hours and have the money in your account in 1–2 days.
All we need from you is 150% of the loan amount in bitcoin or ethereum (your crypto collateral). Then, we issue your loan in Constant, USD-backed “digital dollars” you can redeem for cash (in USD or local currency), send abroad for free, or retain and enjoy the stability offered by the world’s reserve currency.
You can be matched in hours and have the money in your account in 1–2 days. There is no paperwork to sign — smart contracts on the Ethereum blockchain record the terms of your loan and ensure both you and your investor comply with them.
You can borrow up to 66% of your collateral’s value without fear of rejection, high interest, or onerous terms.
Why we overcollateralize loans
Your loan is secured by cryptocurrency collateral. In other words, you’re temporarily unlocking the value in digital assets in return for a cash loan. We overcollateralize, that is, ask for 150% of the loan value instead of, say, 100% for two reasons:
1. To give your collateral some leeway should it fall in value.
Cryptocurrencies are renowned for their volatility. If you were to stake just 100% of the loan value, the chances of it falling short are high. Instead, we ask you for 150%, which gives your collateral a little breathing room should the market dip.
2. To give our investors confidence.
Before investors part with their money, they need a little reassurance. They need to know their money will return a profit, otherwise they won’t invest. Staking your cryptocurrency in return for a loan therefore gives our investors the confidence to invest in you.
When compared to other crypto loan providers, our loan-to-value (LTV) ratio is one of the most generous. You can borrow up to 66% of your collateral’s value without fear of rejection, high interest, or onerous terms.
How we protect your collateral
While you put your loan to use, your collateral stays locked inside a smart contract. It contains all the details of your loan, and enforces the agreement between you and the investor automatically. We never get involved, nor do we take custody of your collateral, which removes the risk of fraud and human error.
All changes to the smart contract are validated by the Ethereum network — a blockchain containing 1,000s of validators. So even if someone wanted to run off with your crypto, it would require collusion of the entire Ethereum network.
Repaying a loan
Repaying a Constant Crypto Loan is easy. To repay, simply log into your account and deposit the required amount to settle the loan, either through a wire transfer or by buying the equivalent amount of Constant on exchanges and sending it to your Constant wallet. We’ll deduct repayment automatically once the funds are available in your Constant account.
You’ll receive plenty of notice before your term expires, after which you’ll have two days to repay the loan. At the moment, you can’t repay early (though you can deposit the repayment early, we won’t take it until the end of the term), nor can you top up your cryptocurrency collateral should it fall in value. We’re working on these features so stay tuned.
And if you can’t repay? We sell your crypto collateral to repay your investor and give you the difference (if there is any).
And if your crypto falls in value?
The crypto market might be volatile, but don’t let that dissuade you from unlocking the value of your crypto now. Our liquidation threshold is very generous. Only when your collateral falls to 110% of the investor’s combined principal plus interest to date is it liquidated.
Even if we sell your crypto to repay your investor, you still keep the loan. Apart from losing out on the potential uplift in the crypto’s value — which is not guaranteed — this could be a very small price to pay for liquidity when you need it most. But regardless, you have plenty of “room” should your crypto fall in value.
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