APX Lending launches a five-year revolving credit line collateralized by bitcoin and ethereum.
DeFi & Yields ·
APX Lending has introduced a five-year revolving credit line secured by bitcoin and ethereum collateral. The facility offers a 60% loan-to-value ratio with no origination, liquidation, or early-prepayment fees, and interest accrues only on the amount actually borrowed rather than the full available credit line.
The product differs from traditional fixed-term crypto loans by allowing borrowers to draw, repay, and redraw funds repeatedly within an established facility without submitting a new application each time. Available credit fluctuates with the market value of the posted collateral and the amount already drawn, capped at the approved limit. If collateral value declines and loan-to-value reaches 90%, the protocol triggers an automatic sale of collateral to bring the ratio back to approximately 85%, with no liquidation fee charged to the borrower.
The mechanics address a specific borrowing need—ongoing or fluctuating capital requirements rather than one-time liquidity events. Details remain unclear regarding interest rates, minimum facility sizes, approval criteria, and which borrower types qualify for the product.