What is Credit Line of VNDC Wallet?

Lending services for cryptocurrencies in Vietnam have been around for a long time, but it is difficult for investors to find a trusted address to mortgage their assets. VNDC Credit Line was born to bring a new solution for Vietnamese investors.

1. What is CreditLine?

Credit Line is a lending feature of VNDC in the form of digital asset collateral. Users who own assets such as BTC, ETH, CHI, USDT, USDS can use collateral with different limits. The amount disbursed will depend on the value of the property at the time of using the service.

Credit Line feature is a centralized lending platform, meaning users will transact directly with VNDC. Essentially, a digital mortgage loan does not require complicated paperwork or a CIC (credit information center) check. Most platforms only require account verification (KYC).

Currently, in the world, there are many crypto-mortgage lending platforms such as Nexo, SATL… but in the Vietnamese market, users can only easily encounter similar forms of lending through “black market” transactions. This brings a very high risk to the mortgagor.

2. Why choose Credit Line?

In the last days of April 2020, the price of bitcoin and other digital currencies fell sharply, a group of investors increased their purchasing power, waiting for the price to increase. However, at the time when the price suddenly hit the bottom, not all investors have money ready to invest further.

Besides, the market “storm” also makes it difficult for investors who have stored bitcoins before. With the price bottoming, this group has only two options, either suffer losses and sell bitcoin to invest in other coins or continue to hold and wait for the opportunity, but do not know when bitcoin will peak again. .

It would be a shame if bitcoin rallied again after you sold. But if you keep it forever, a certain amount of capital will be accidentally wasted and you also miss other investment opportunities.

The Credit Line feature provides a satisfactory solution to the problems faced by investors. With a mortgage, you have the money you need right away without selling the assets you hold.

3. How does VNDC Credit Line work?

VNDC Credit Line applies limits to the following types of digital assets:

BTC, ETH, CHI: 50%
USDS, USDT: 90%
There are 3 types of loans for users to choose from:

VNDC Loan: Guaranteed by VNDC.
After entering the loan within the available limit, VNDC will be disbursed directly to the wallet. Minimum loan of 200,000 VNDC with an interest rate of 0.064%/day.

USDT and USDS Loans: Guaranteed by VNDC’s account at Nexo (meaning when users create a loan in VNDC account, VNDC will execute loan orders at Nexo to ensure the security of digital assets) and Stably. io.
After entering the loan within the available limit, USDT or USDS will be disbursed directly to the wallet. Minimum loan of 5 USDT or 5 USDS with an interest rate of 0.034%/day.

The system will automatically grant a credit limit based on the types of digital assets stored in the wallet. Interest will be automatically deducted from the account balance at 11pm every day.

Notes when using Credit Line feature
When the market fluctuates, the loan value is greater than or equal to 95% of the total value of the collateral, the system will automatically convert the collateral into VNDC or USDS, USDT at the Trustdex.io exchange rate (depending on the exchange rate). credit to the original loan of choice) and pay off the loan.

If the settlement of assets is less than the loan, the remaining balance will be created as a new loan and the user only has to pay the daily interest based on this new loan.

4. When to use the Credit Line feature

As mentioned above, sometimes when the market fluctuates and investors do not have time to turn their capital, the Credit Line feature is an optimal choice, users do not need to sell their holdings but still have the opportunity. Association to capture and invest as expected.

On the market today, besides bitcoin, there are many other types of digital assets. If short-term investors realize the potential from these assets, capital for reinvestment is no longer an obstacle. Or simply want to use fiat money to spend outside.

5. Benefits of using the Credit Line feature

Liquidity: One of the top factors investors care about is liquidity, with the Credit Line feature having a 100% liquidity ratio. Users can completely get loans immediately.

Reinvestment: As soon as the loan is received, the investor can invest in another project. This helps investors’ capital not stay in place wastefully. But it also gives investors the opportunity to capture good returns.

Still receive Staking Daily interest from mortgaged assets: Collateral types are temporarily locked, but can still receive interest from Staking Daily feature, interest rates vary according to the type of asset stored in the wallet. .

The number of settlements can be broken down: This gives users the flexibility to pay off their loans at any time with a minimum settlement amount of only 100,000 VNDC for each payment and easily control the amount of the loan. your loan on the app