How to use KuCoin Shares (KCS) as collateral and leverage on Constant
Hold KuCoin Shares (KCS)?
Then you’re eligible for a special interest rate on all loans on our P2P lending platform.
From July 3rd to 10th, you’ll match instantly at just 4.5% APR.
To help you get started, we’ve put together a guide that explains how to use KCS as collateral as well as a margin trading strategy made possible by our lending mechanism.
How to use KCS as collateral on Constant
Step 1. Create a Constant account
It only takes a minute and is completely free — and you’re under no obligation to borrow or invest. Ready? Open an account now.
Step 2. Enter your borrowing information
Visit the Borrow tab and choose:
- how much to borrow,
- the interest rate, and
- loan term.
You can borrow up to 66% of your collateral’s value. We overcollateralize loans to give you some “wiggle room” should your collateral fall in value. It also gives our investors confidence, too.
When choosing the interest rate, don’t go too low or you might struggle to find a match. Most people match within 12 hours at 6% APR, but you’ll match instantly at 4.5% during the KuCoin promotion. Please also note there is a 1% matching fee.
Oh — and don’t forget to fill in the wallet address where you’d like us to return your KuCoin Shares.
Step 3. Send the collateral
Almost there! Once you’ve filled out the details in step 2, you’ll see the screen below. Please send your collateral to the address shown and then we’ll find you a suitable match.
You can check the loan status on your Accounts page:
- Pending means we’re still waiting on your collateral.
- Matching means we’ve received your collateral and finding you an investor.
- Matched means we’ve found you an investor and you can withdraw your loan now.
Step 4: Withdraw your loan
You can withdraw your loan in fiat or transfer it to your wallet (or someone else’s) as a stablecoin.
To withdraw fiat, you need to verify your ID. This can take 24–36 hours in some cases, so verify your ID before applying if you intend to withdraw fiat.
After verifying your ID successfully, you’ll be able to withdraw through Zelle or as a direct transfer to your bank account.
Alternatively, you can withdraw your loan as one of the following USD-backed stablecoins:
- CONST (our native stablecoin)
- USDT (Tether)
- TUSD (TrueUSD)
- USDC (USD Coin)
Importantly, you don’t need to complete KYC to withdraw your loan as a stablecoin. All we need is the destination wallet address.
Step 5. Repay the loan
To repay, deposit the repayment amount into your Constant account in either fiat or stablecoins. You can do this from your Accounts page. Once your loan matures, the system will deduct the repayment automatically. Shortly afterwards, you’ll receive your collateral back in the wallet address you specified in Step 2.
If you do choose to repay in a stablecoin, please remember to send to the correct wallet address.
You can repay whenever you like. If you repay before 75% of the term is up, you’ll pay interest for the days you are in possession of the loan, and just 50% of the original interest rate for the remaining days of the term.
If you repay after 75% of the term is up, you’ll pay the full interest due on the loan at the full rate. This protects our investors’ returns and ensures we can always find you a match.
Once your loan matures, you have two days to repay. If we don’t receive the repayment by the end of the second day, your collateral will be sold to repay the investor. But don’t worry — we’ll remind you three times before selling your collateral.
Also, we’ll remind you at 5% intervals should your collateral fall in value. The first reminder will be at 125% of the loan value and interest to date. Then again at 120%, and finally at 115%. Once it drops to 110%, it’ll be sold to repay the investor.
Everything you need to manage your loan is on your Accounts page. Not only can you repay early, but you can also top up collateral if the market falls or recall excess collateral if it increases in value during the loan term.
How to use your KCS as leverage
What follows is an explanation of something similar to margin trading. It therefore involves risk, so please only borrow as much as you can afford to repay — otherwise your collateral is at risk.
Borrow, reinvest, sell
If you’ve spotted bullish signals but lack the funds to invest, here’s a simple strategy you can follow using Constant:
- Borrow the required funds using your existing KCS as collateral.
- Use the borrowed funds to reinvest in more KCS (or another digital asset).
- Once the asset rises in value, sell it and repay your loan, pocketing the difference.
- Use said difference to buy more KCS or other assets.
- Rinse and repeat!
The trick is timing the market correctly, so please use caution.
And don’t forget — you can borrow at the special discounted rate of 4.5% between July 3rd and 10th inclusive. So don’t miss out. If you have any comments, feedback, or questions, please drop us a line at email@example.com or on Telegram.
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