Using assets as collateral instead of selling them allows borrowers the freedom to hold onto assets for whatever reason, whether they believe the asset may appreciate or they have some attachment or utility to them (in the case of NFTs) while unlocking their economic value.
Depending on your country and jurisdiction, selling assets may incur taxes, whereas a loan may not. Please consult a local tax professional for any tax advice.
You can borrow as much as a lender is willing to give you. Depending on the risk of price fluctuation on the asset, this could be anywhere between 1-100% of the collateral's value. Typically, collateral that is likely to remain stable or increase in price can command loans closer to its current market value.
You repay a loan using the same asset that you borrowed, plus the interest agreed upon at the start.
Our token bundler tool allows you to do just that! Check out our Token bundler guide if you want to bundle multiple assets together.