In exchange for this borrowing, users are given stable USDT, USDC, and BUSD coins that they can use. One can trade or sell them directly. There pay a monthly fee for the service.
The percentage rate ranges from 12% to 16% annually. This interest is calculated monthly and included in the repayment amount. The loan-to-value (LTV) is set at 50% or 70%. LYOTRADE then gives 50% or 70% of the collateral value as a loan. This allows user risk to be minimized and offers protection from the stark volatility of collateral prices.
If the price of a user’s collateral rises, they will receive back the amount they borrowed in the initial currency, plus they will have received the stable coins. They can close the loan at any time. If the price falls, the collateral currency reaches the liquidation level, the collateral will be automatically liquidated, and the loan will be closed.
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