Ready offers a collateralized borrowing feature that lets you borrow USD using your Bitcoin (BTC) as collateral.
What is collateralized borrowing?
Collateralized borrowing lets you deposit Bitcoin (BTC) as collateral and borrow USD without selling your crypto.
When you borrow, your Bitcoin is locked as collateral to secure the loan. You still own it, but you won't be able to use it until you've repaid your loan.
Example: Locking $10,000 worth of Bitcoin as collateral could allow you to borrow between $100 and $7,400 (up to 74% of your collateral's value).
To reduce the risk of liquidation, it's important to keep the amount you borrow well below the value of your collateral.
How do I start borrowing USD?
Getting started only takes a few steps:
- Open the Borrow tab.
- Tap Borrow USD.
- Read and acknowledge the liquidation risk.
- Choose how much USD you'd like to borrow.
- Review your loan details.
- Confirm the transaction.
How do I repay the loan?
Unlike a traditional loan, there are no fixed monthly repayments. You can repay the full amount or make partial repayments whenever you like.
To unlock your collateral, you'll need to repay the borrowed USD together with any accrued interest.
Making partial repayments reduces your outstanding debt, lowers your loan-to-value (LTV) ratio, and decreases the risk of liquidation.
What happens if BTC price drops?
Bitcoin's price can be volatile. If its value falls significantly, part or all of your collateral may be liquidated to repay your loan.
Example: If BTC falls by 28%, your $10,000 collateral would be worth $7,200. If this causes your position to reach the liquidation threshold, part or all of your collateral may be sold automatically to repay your loan.
How can I protect my collateral?
To reduce the risk of liquidation, we recommend borrowing conservatively.
Keep an eye on the BTC price and be prepared to either repay part of your loan or add more collateral if needed.
You can also enable notifications to receive alerts if your position becomes at risk.
What’s the loan-to-value (LTV) ratio?
Your loan-to-value (LTV) ratio compares the value of your loan with the value of your collateral.
A lower LTV means your position is safer and less likely to be liquidated.
Example: If you lock $10,000 worth of Bitcoin as collateral and borrow $2,600, your LTV is 26%.
What are the interest rates?
Borrowing rate
Interest is charged on the borrowed USD as an Annual Percentage Rate (APR), accrued monthly and added to your outstanding loan balance.
Yield on your collateral
Your Bitcoin collateral continues to earn yield as an Annual Percentage Yield (APY), accrued monthly. Rewards are distributed in STRK tokens and can be claimed weekly.
You can also earn yield on Bitcoin through staking. See How to earn yield on Bitcoin for more information.
What fees apply?
Ready and Vesu don't charge liquidation or withdrawal fees.
A network fee applies to each transaction.
What is the minimum or maximum I can borrow?
Minimum borrowing amount: 30 USDC
Maximum borrowing amount: There is no fixed maximum. The amount you can borrow depends on the value of your Bitcoin collateral and current market prices. You can borrow up to 74% of your collateral's USD value.
Is my BTC safe?
Your Bitcoin is held securely in a smart contract while it is being used as collateral.
Can I lose my BTC?
Yes.
If your collateral reaches the liquidation threshold and you don't repay part of your loan or add more collateral in time, part or all of your Bitcoin may be sold automatically to repay the debt.
Can I repay early?
Yes. You can repay any amount at any time without penalties.
Can I top up or withdraw collateral assets?
Top up: Yes. Adding more collateral lowers your LTV and reduces the risk of liquidation.
Withdraw: Yes, as long as withdrawing collateral doesn't cause your position to exceed the maximum allowed LTV.
What's the liquidation threshold?
The liquidation threshold for BTC/USD is 78% LTV.
We recommend enabling notifications so we can alert you before your position reaches this threshold.
How does liquidation work?
If your position reaches the liquidation threshold, part of your collateral is sold automatically to repay your loan and keep the protocol solvent.
Can I borrow more USD later?
Yes.
Can I borrow against other assets?
Not at the moment.
We're planning to support additional assets as collateral in the future.