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Blogs > Crypto in a Minute > Earn as you supply, Save as you borrow: Make your money work with Phemex Lending Protocol >

Earn as you supply, Save as you borrow: Make your money work with Phemex Lending Protocol

Author: Oyku Date: 2024-04-16 09:45:31

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Are you searching for a trustworthy platform where you can borrow cryptocurrency or lend your assets to earn passive income? Feeling overwhelmed by the multitude of DeFi protocols and concerned about their reliability? Look no further—Phemex is your one-stop solution for all your lending and borrowing needs!

Recall the moment we unveiled our Web 3.0 ecosystem, Phemexia, and committed to decentralizing certain aspects of our exchange? Our goal was to pioneer the first hybrid exchange, seamlessly integrating centralized (CEX) and decentralized exchanges (DEX) strengths. Today, over 30,000 community members are already benefiting from Phemexia. If you haven't joined them yet, the Phemex Lending Protocol is your perfect starting point!

How to choose a lending protocol?

Navigating the sea of lending protocols can be daunting, but looking for one that combines robust security with attractive yields is key. As a user, you always need to prioritize a protocol with a transparent track record that aligns with your financial goals. 

We understand that, as a trader, you're constantly looking for more control over your portfolio without compromising on security. That's precisely why Phemex is broadening its services within our Web 3.0 ecosystem, beginning with the unique Phemex Lending Protocol. This innovative feature blends the best practices from leading DeFi protocols with the operational efficiency and intuitive interfaces you've come to expect from our CEX background. In essence, you'll enjoy a frictionless experience, complete with competitive borrowing rates and a top-tier APY for lending, on par with the finest offerings in both the DeFi and CeFi arenas.

Phemex Lending Protocol benefits you shouldn’t miss out on

Now that you understand Phemex's capabilities as a hybrid exchange designed to fulfill your borrowing and lending requirements, you might be curious about the tangible advantages of choosing the Phemex Lending Protocol.

Allow us to provide you with brief yet compelling reasons to get started today: save on borrowing expenses and earn consistent interest on the assets you contribute:

  • Maximize Your Wealth: Unlock the power of your portfolio with our cutting-edge Lending Protocol. Leverage your holdings to acquire loans in USDT, BTC, ETH, or PT, all while keeping your crypto investments intact without the need to sell your assets! 


  • Transparent Pricing Guarantee: Absolutely no hidden or additional fees on your loans, supported by Phemex’ renowned reliability and user dedication. 


  • Secure, Asset-Backed Financing: Gain peace of mind knowing that every loan is fully collateralized with your crypto assets. Phemex empowers you with the choice to tailor your loan terms, offering flexible interest rates that adapt to your financial strategy.


  • Unbeatable Borrowing Rates: Explore the market's most competitive borrowing terms, featuring an annual USDT interest rate for borrowers starting at just 5%—a stark contrast to the double-digit rates found on other platforms, and watch your savings flourish. For vePT holders, the benefits multiply with an exclusive 30% discount on borrowing rates, enhancing your financial advantage.


  • Safeguarding Your Principal Against Market Volatility: Rest assured with enhanced protection of your principal with Partial liquidations. In the event of market volatility leading to a liquidation scenario, we only liquidate a fraction of the collateral—just enough to restore the Loan-to-Value (LTV) ratio to a secure threshold. This measure safeguards your investment from being fully liquidated at once, providing a buffer against immediate total loss.


  • Freedom of Movement for Your Funds: Phemex ensures your funds remain at your command, ready for withdrawal and reallocation on your terms. Experience the liberty of seamless fund mobility, free from unnecessary constraints or waiting periods.


Phemex makes your money work the right way 

Get ready for the fanfare—drumroll, please—as the Phemex Lending Protocol reaches new peaks of allure, elevating your cryptocurrency gains to unprecedented levels! Are you with us?

Here's the lowdown: By contributing to our lending pools, you can now lock in steady, attractive APY returns, creating a reliable source of passive income!  

While you enjoy the market's lowest borrowing rates, you can also supply your assets as liquidity, with the potential to earn interest with real-time APR! 

So you have the reliability of an established exchange like Phemex, well-known for its rock-solid security. You also gain the financial freedom that only a DEX can offer, along with the lowest borrowing rates available. Moreover, we ensure that your money works for you in the most rewarding way as you contribute to the protocol. It really doesn't get any better than that!

How to get a loan on Phemex? 

Now that you know you’re here to enjoy the best borrowing rates in the whole wide market, let’s get you up to speed on how to get your loan. And fear not, we’ve made it as intuitive as possible just for you! 

We use a cool over-collateralization model to determine borrowing limits based on the value of the collateral and the Loan-to-Value (LTV) ratio. To exemplify for you, with an LTV of 70%, a borrower providing $100 worth of collateral would be eligible to receive a loan of up to $70 in USDT from the protocol.

In essence, you’ll simply choose the token you intend to borrow, check its current initial LTV, and collateralize the corresponding tokens to receive a loan from the Phemex Lending Protocol.

LTV, or Loan-to-Value, is a percentage that shows how much you can borrow based on the value of the tokens you deposit. If the LTV is higher, you can borrow more. The actual amount you can borrow is your deposit times the LTV percentage. 

To break all this down, here are all the steps needed to get your loan:

Before You Begin: The Essentials

  1. Create a Phemex Account: If you haven't already, sign up and verify your account on Phemex. It's your gateway to borrowing!
  2. Gather Your Collateral: Ensure you have enough funds in your spot or lending account to use as collateral for your loan.

Choosing Your Loan: The Fun Part

  1. Pick Your Preferred Asset: Visit the market page on Phemex to select the asset and the amount you'd like to borrow. 
  2. Read and Agree: Familiarize yourself with the Phemex lending terms and conditions. Accept them along with the lending service agreement to enable your lending account.

Navigating to Phemex Lending: A Quick How-To

  • From the Homepage: Click on the 'Web3' dropdown menu and select 'Phemex Lending'.
  • Via the Web3 Page: Use the navigation bar to find and click on 'Phemex Lending'.
  • Through PT Staking: Spot the 'Phemex Lending Banner' on the PT Staking page and give it a click.

The Borrowing Journey

  1. Log In and Locate: Sign in to your Phemex account. Hover over 'Web3' and click 'Phemex Lending'.
  2. Make Your Choice: Decide which cryptocurrency you'd like to borrow.
  3. Specify the Amount: Enter how much of the chosen crypto you want to borrow.
  4. Select Your Security: Choose the asset you'll be using as collateral.
  5. Review and Borrow: Check over the loan details carefully, then click 'Borrow'.
  6. Confirm Your Decision: A popup will show your order details for one last review. Click 'Confirm' i\f everything looks good.
  7. Receive Your Loan: Voilà! The loan amount will be transferred to your lending account.

And there you have it – your guide to borrowing on Phemex in a nutshell. With these simple steps, you're well on your way to leveraging your digital assets for your financial goals. 

Happy borrowing!

How to supply and earn on Phemex? 

Now that we secured borrowing, let’s dive into the world of earning where you help fellow crypto enthusiasts and make passive income in return! As you lend your cryptocurrencies, you're not just sitting back, you’re watching your assets grow. Spin the wheel of fortune for others, and with every loan you give, you'll be collecting interest like a champion. 

Introducing Your Earning Variables

  1. Supply APY: Your Flexible Friend, supply APY! It shapeshifts with the market's ebb and flow, and it's as flexible as it gets, updating every hour to give you the best possible returns.
  2. Real-Time APR: Your Financial Pulse– This is the heartbeat of your investment. It's the pulse that shows the lifeblood of your earnings, giving you the annual snapshot of your growing wealth. It's real-time, keeping you informed and your strategy sharp.
  3. Hourly Real-Time Rewards - Your Steady Stream of Treasures: This variable dispenses Phemex Tokens (PT) into your wallet every 60 minutes. It's the gift that keeps on giving, ensuring your investment pot is always brimming.


Navigating the Rules:

  • Flexibility at Its Finest: Your Supply APY isn't set in stone; it's a living, breathing creature that moves with the market's pulse. And it's not shy about changing – it does so hourly!
  • Redeem and Withdraw in a Flash: Unless the unexpected happens, your assets are yours to command at any moment. With the ability to redeem and withdraw real-time, your financial flexibility is unmatched.
  • Interest, Delivered Automatically: Your earned interest is automatically deposited into your lending account. You won't lift a finger; your earnings will simply start working harder, all on their own.


The Supplying Journey

  1. Log In to Your Phemex Account: Start your journey to earnings by logging into your Phemex account. This is where your financial adventure begins!
  2. Navigate to Phemex Lending: Once you're in, head to the Phemex homepage. Look for the Web3 Dropdown menu and select "Phemex Lending." This is your portal to potential profits.
  3. The Lending Page Awaits: You'll land on the Lending page, where you can easily spot our "One Click Lending" feature. It's the express lane to earning! Or, if you prefer to see all opportunities, scroll down to check out the Lending Supply Market.
  4. Select Your Asset: Choose the cryptocurrency you want to supply and decide on the amount. Be sure to review the terms and understand all the variables. Once you're ready, agree to the Phemex Crypto Loans Service Agreement by ticking the box, then hit "Supply" to confirm your action.
  5. Confirmation and Transaction Details: After you've supplied, you can verify the details of your transaction in the "My Lending Account" section under Ongoing Supply.
  6. Manage Your Supply: On the Ongoing Supply page, you have two straightforward options:
  • Supply More: If you wish to increase your investment, you can supply additional amounts to your ongoing order here.
  • Redeem: Ready to collect your earnings? Choose redeem to receive your funds on the same day. The assets currently earning rewards will be accessed first. You also have the choice to move your funds to your Lending Account or Spot Account.

With these steps, you're all set to navigate the Phemex Lending platform and start earning with ease!

Enjoy now: Rock Bottom Rates for Borrowing, Top Tier APY for Supplying

With the industry's most competitive borrowing rates and top-tier APYs for lenders, Phemex is the financial powerhouse at your fingertips. Whether you're looking to grow your wealth or access funds without selling your investments, Phemex provides the security, flexibility, and control you demand. So, why wait?

Take a chance at Phemex Lending Protocol today. Make your move, earn smart, and borrow smarter—only with Phemex, where your financial aspirations take flight!

Make sure to update your Phemex app to version 5.5.11 to access the Phemex Lending Protocol from the app!

And keep your eyes and ears open, because soon we're launching uncollateralized lending with the added feature of automatically reinvesting interest income back into the lending pools. Stay tuned for more…


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