Review: Lendingblock Crypto Interest And Loans

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NOTE: This is an archived post. Lendingblock is no longer operating.

The crypto savings and lending space is an increasingly crowded market making it difficult for platforms to stand out from the competition.

However, one thing that’s sure to attract the attention of the crypto community is the promise of juicy returns.

And that’s exactly what’s on offer at Lendingblock – high base level yields for depositing your crypto which can be further boosted by staking the platform’s native LND token.

This means you can earn a passive income on your coins instead of having them languishing on an exchange or hardware wallet.

And if you need a loan at a competitive rate with no credit checks or upfront fees and have crypto as collateral, Lendingblock offers this as well.

Here, I take a look at how Lendingblock works and how it stacks up against the competition.

About Lendingblock

The Seychelles-based company launched in 2018, with a vision to bring ‘the best digital asset lending infrastructure to the widest audience possible through licensing and partnering with institutional clients, and by directly serving individuals with cryptocurrency lending and borrowing services.’

It boasts an esteemed institutional pedigree, having received a DLT (Distributed Ledger Technology) license from the Gibraltar Financial Services Commission (GFSC) in 2019.

For retail clients it offers interest on a small basket of cryptocurrencies, together with competitive loans without the need for a credit check.

Institutional products include providing dedicated management software for digital asset borrowing and lending.

Getting started with Lendingblock

Signing up for a Lendingblock account is super simple and you’ll be set-up in no time at all.

There’s no KYC/AML process to go through meaning account activation is almost instantaneous, whether you’re seeking to deposit crypto or take out a loan.

Once set up, you’re presented with a minimalist and well-designed GUI which is intuitive and easy to navigate.

Even those with little crypto experience should be able to find their way around, whether they’re using the ‘Earns’ or ‘Borrows’ features.

Earns is for those who want to earn interest on their crypto holdings, while Borrows is for those seeking to use as collateral to borrow money.

Earning interest on Lendingblock

To start earning interest on the Lendingblock platform you need to select the ‘Earns’ tab from the dashboard.

Then you simply choose the cryptocurrency to deposit, select either a 1, 3 or 6 month term before entering the amount you’re depositing.

You’re then given a summary of what you’re signing up for, including the interest rate and the interest you’ll have earned at the end of the deposit period.

For example, at the time of writing depositing .25 BTC for 3 months would earn 0.00362329 in interest at a rate of 5.75% (without any LND staking boost – more on this later).

At present the platform is limited to Bitcoin (BTC), Ethereum (ETH), LND and stablecoin Tether (USDT) deposits, with interest paid in kind meaning your returns come in the form of whichever crypto you’ve deposited.

One thing that differentiates Lendingblock from the competition is that the interest rates are the same, no matter how much you deposit.

The market rate together with any boost applies to the full balance of your Earn account. Most other platforms reduce the yield as the amount of crypto you deposit increases.

Borrowing money through Lendingblock

To start applying for a USDT loan, you need to choose the ‘Borrows’ tab which takes you to an overview of your current position.

You then need to select your collateral currency (either BTC or ETH), then choose either a 1, 3 or 6 month term and the amount you wish to borrow. The platform then automatically completes the required collateral amount.

To give you an example, I selected BTC as the collateral currency, and selected a 3 month term to borrow 1,000 USDT.

The interest rate at the time of writing was 8% with a 50% Loan-To-Value Ratio (LTV) with the collateral amount needed being 0.09443663 BTC ($2,000).

After creating your Borrow and depositing the collateral the USDT will be available to you immediately, with no monthly repayments for the duration of the loan (1, 3 or 6 months). The principal and interest is only due at the end of the loan period.

Lendingblock interest boost tiers

You can increase the interest on Earns, or reduce it on Borrows, based on the number of LND (the platform’s native token) you hold and stake.

Increasing the amount of LND staked will unlock boost tiers which at the time of writing were – bronze (5% earning bonus/borrowing discount), silver (10%) and gold (20%).

For example, to qualify for the Gold account tier you would need to hold a balance of 2,079,000 LND.

The LND balances required to qualify for each boosted tier are reset each month based on the number of users and the LND held on the platform as a whole.

Boosted interest payments are made in kind, meaning if you deposit Bitcoin the additional interest will be paid in that coin.

Rewards

Staking LND on Lendingblock also qualifies users for the platform’s monthly rewards scheme in the form of a staking airdrop.

The allocation is split equally between staking, borrowing, trading and earning and distributed according to the amount of qualifying LND an individual holds, together with the overall LND pool.

Is Lendingblock secure and safe to use?

Yes. Lendingblock uses state-of-the-art technology to keep your crypto safe, together with Know Your Transaction (KYT) checks on all transfers off the platform.

The company works with cold storage solutions provider Copper, and deploys multi-signature wallet control meaning no single party can withdraw coins.

Funds are also insured against criminal activity of up to $10 million through an Aon policy.

Does Lendingblock offer a crypto exchange?

A basic exchange function is available through the platform which enables you to trade LND and USDT at the time of writing.

Does Lendingblock offer an affiliate referral scheme?

Yes, you can earn up to 50 USDT in referral payments paid into your Earn account each time a friend signs up and activates either their Earn or Borrow account.

However, you need to have an active Earn or Borrow account yourself to be able to take part in the referral program.

Conclusion

Lendingblock offers a tempting proposition for anyone looking to put their idle crypto to work, or for a competitive loan.

The super slick set-up process breaks down many of the barriers that people often face when engaging with a crypto platform which is real plus when it comes to increasing overall widespread crypto adoption and acceptance

The Lendingblock team has an extremely strong pedigree in the fintech sector, and they clearly take security very seriously.

If you’re looking to boost your crypto earnings, or if you need a low cost-loan, then Lendingblock should definitely be on your shortlist.