Welcome to Quantum Loans, your gateway to unlocking the potential of your cryptocurrency holdings without selling them! 💎🙌
🎉 First Place Winner 🏆 – We're proud to announce that Quantum Loans won first place in our recent competition!
Access the demo video here - Quamtum Loans Demo Video
- cd to frontend
- npm install
- npm run dev
- cd to python-backend
- pip install -r requirements.txt
- python app.py
This takes care of everything, the backend makes the necessary calls to the solidity smart contracts
Overcollateralized crypto loans allow you to access liquidity 💧 without parting with your valuable crypto assets. By depositing more collateral than the loan amount, you can borrow stablecoins or other cryptocurrencies safely and efficiently. 🛡️
- Deposit Collateral 🔒
- Lock up your cryptocurrency (e.g., Bitcoin ₿, Ethereum 🌐) as collateral.
- Borrow Funds 💰
- Borrow up to a certain percentage of your collateral's value in stablecoins or other cryptocurrencies.
- Monitor Collateral Value 📈
- Keep an eye 👀 on your collateral's market value to avoid liquidation.
- Repay Loan 🔄
- Pay back the loan amount plus interest to retrieve your collateral.
⚠️ Important: If the value of your collateral drops below a specific threshold, it may be liquidated to repay the loan.
An overcollateralized crypto loan requires you to deposit more cryptocurrency as collateral than the amount you wish to borrow. For example, to borrow $100 worth of stablecoins, you might need to lock up $150 worth of Bitcoin ₿ or Ethereum 🌐.
Overcollateralization protects lenders against the volatility 📊 of cryptocurrency prices. By requiring more collateral, lenders mitigate the risk of the collateral's value decreasing sharply.
If you want to borrow $100 💵, you'll deposit $150 of cryptocurrency as collateral. If the collateral's value drops significantly 📉, you may need to add more funds or risk liquidation.
If your collateral's value falls below a certain point, the platform may liquidate 💥 some or all of it to repay the loan, ensuring lenders recover their funds despite market fluctuations.
Collateral requirements vary by platform but typically start at 150% of the loan amount. This means you'd need $150 in collateral for a $100 loan. 💎
Upon liquidation, the platform sells your collateral to repay the loan. You may lose part or all of your collateral 😢 and could still owe additional fees.
Yes! 😊 Once you repay your loan (including any interest or fees), you can withdraw your collateral. If your collateral hasn't been liquidated, you'll get back the full amount. 🥳
- Tax Efficiency 🧾: Borrowing doesn't trigger taxable events.
- Investment Strategy 🚀: Retain ownership of crypto assets expecting future value increase.
- Liquidity Needs 💦: Access funds without selling your holdings.
Yes, most platforms charge interest on loans. The rate depends on the platform and type of loan, and it can be fixed or variable. 📅
We appreciate your interest in Quantum Loans! If you're passionate about decentralized finance and want to contribute, feel free to fork our repository and submit a pull request. Let's revolutionize crypto lending together! 💪
Empowering you to achieve more with your crypto assets. 🚀🌕