What is Phemex Lending Protocol?
Phemex lending protocol is a service that allows users to borrow cryptocurrency by using their existing crypto asset holdings as collateral. This can be a useful way to access funds without having to sell your crypto.
For Phase I:
1. Phemex lending protocol will support overcollateralized, flexible borrowing with variable interest rate.
2. vePT holders enjoy a 30% discount on USDT borrowing interest rate.
Please note:
- This discount percentage can be changed subject to market conditions
- Currently the discount only extends to USDT lending, but in the future it may expand to other assets based on market circumstances
For Phase II:
Phemex lending protocol is planning to support the use of staked PT as a credit guarantee to enable uncollateralized borrowing
For Phase III:
Phemex lending protocol will allow users to supply assets into the lending pool to earn interest returns and improve liquidity
Our benefits:
- Competitive interest rates
- No extra fees
- Flexible loan terms
- Wide array of assets accepted as collateral
- High LTV to borrow
- Fast and easy access to funds
- No credit checks required
- vePT holders enjoy special borrowing privileges
- Borrow assets and earn interest at the same time (In the future)
Notes:
1. One borrowed coin<>One collateral asset
a. An asset collateral can only be used to facilitate borrowing of one type of asset
b. Using one type of asset collateral to borrow multiple asset types is not supported
2. Overcollateralization model
Platform adopts an overcollateralization model, in which how much assets can be borrowed is determined by the value of collateral and the LTV. For example, if LTV is 70% and a borrower supplies collateral with a value of $100, then the protocol can lend out 70 USDT to this borrower.
3. LTV Formula
a. = Total loan amount / Value of collateral
b. Loan amount = ∑（principal to be repaid + interest to be paid）
4. LTV Configuration (Each collateral type can have corresponding LTV configurations)
a. Initial LTV
b. Margin Call LTV
c. Liquidation LTV
5. Liquidation
If LTV exceeds the acceptable Liquidation LTV, then the loan will be liquidated and 2% of debt assets will be charged as liquidation fee
How to Get a Loan on Phemex?
To get a loan on Phemex, you will need :
- A verified Phemex account.
- Sufficient collateral in your spot and/or lending account.
- Choose the asset and amount you wish to borrow. >> Link
- Agree to the Phemex lending terms and conditions.
- Agree to the Phemx lending service agreement for enabling lending accounts.
How to Access Phemex Protocol Page：
- Phemex homepage > Web3 Dropdown menu > Phemex Lending
- Phemex Web3 page > Navigation bar > Phemex Lending
- PT Staking page > Phemex Lending Banner
The Lending Process
Here are steps to get a loan on Phemex:
- Log in to your Phemex account and go to Web3 > Phemex Lending.
- Choose the cryptocurrency you want to borrow.
- Enter the amount you want to borrow.
- Select the collateral asset you want to use.
- Review the loan details and click the Borrow button.
- Double check all information on the order details popup and then click the Confirm button.
- The loan will be sent to your lending account.
Loan History and Actions
1. After the loan is confirmed, you can check the transaction information on the loan dashboard.
2. You can adjust LTV by adding collateral or by partially repaying debt.
3. You can repay the debt via the loan dashboard > ongoing orders. Additionally, you can also check and repay loans on the loan dashboard. Both partial and full repayments are supported.
vePT holder borrowing discount
vePT holders can enjoy a discounted borrowing interest rate for USDT loans, based on amount of vePT holdings
Lending instructions
Discount (subject to potential change): 30%
- Borrowing rate after discount = Current USDT borrowing interest rate * 30%
Amount of USDT that can be discounted
- 1 vePT : 1 USDT
Example：User wants to borrow 1000 USDT, and holds 200 vePT
- Assume that the borrowing interest rate for USDT is 10%
- Then the user’s interest rate for 200 USDT loan is 7% ，while the rate for the remaining 800 USDT is 10%
