NewsHK
Crypto lending markets have contracted sharply through the current Bitcoin ($BTC) bear market, with the mechanics of collateralized borrowing coming under close scrutiny after a cycle of lender failures.
Strike, the payments company headed by CEO Jack Mallers, is now entering that space with a product built around a single structural promise: no margin calls, no forced liquidations.
The catch, Mallers said, is an interest rate that can reach 14.2% annually, along with a firm obligation to repay on schedule. What the product removes, and what it adds back The mechanism is straightforward.
Standard crypto-backed loans typically allow lenders to liquidate collateral automatically when its value drops past a predetermined threshold.
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