Clapp Introduces Low LTV Lending Model to Mitigate Risk
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Advantages of Low LTV Lending: Clapp's low LTV lending model allows users to borrow at a lower ratio relative to the value of their collateral, providing a larger safety buffer during market volatility and significantly reducing liquidation risk.
- Flexible Credit Lines: The revolving credit line offered by Clapp charges interest only on the amount actually withdrawn, with unused credit carrying a 0% APR, which not only enhances liquidity but also avoids unnecessary leverage costs.
- Real-Time Risk Monitoring: Clapp continuously monitors LTV and sends advance notifications when users approach higher-risk levels, enabling timely actions to avoid liquidation risks and enhancing the safety of borrowing.
- Multi-Asset Collateral Support: Clapp allows users to combine up to 19 assets, such as BTC, ETH, and SOL, as collateral for a single credit line, providing flexibility that helps smooth volatility and reduce the impact of sharp price movements in any single asset.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
