W3.loans
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Borrowing against digital assets is one of the oldest ideas in Web3 and one of the least understood. Web3.loans exists to fix that.

What you will find here

  • How it works: collateral, loan-to-value, interest and what triggers a liquidation.
  • Where it happens: the difference between centralized lenders and onchain lending protocols, and who holds your assets in each.
  • What to check first: the questions to ask before you pledge anything you cannot afford to lose.

Our promise

No hype, no teaser rates, no pressure. We explain the mechanics so you can judge the offer in front of you, and we say plainly where the risks are. The original promise of Web3 was choice. Informed choice is the only kind that counts.

Part of the Brego Network

Web3.loans is one of a family of independent sites from Brego Arts & New Media, each focused on one corner of the new web. Explore them all at Web3Network.com, or use the search above to look across the sites closest to this one.

Educational content only, not financial advice. Web3.loans is not a lender, bank or payment service and does not hold funds for anyone.

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Crypto Loans in Six Steps

Web3.loans explains crypto-backed and DeFi lending in plain language, so you can judge any offer before you pledge a thing.

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You lock up digital assets as collateral and borrow against them, usually in cash or a stablecoin. You keep ownership of the collateral and get it back when the loan is repaid.

Crypto-backed loan

LTV is the loan amount divided by the value of your collateral. Borrow $500 against $1,000 of crypto and your LTV is 50%. Lower LTV means more room before trouble.

Loan-to-value (LTV)

If your collateral falls in value and your LTV climbs past the lender's limit, the lender can sell some or all of it to cover the loan. Fast markets can trigger this in hours.

Liquidation

A centralized lender holds your collateral for you. An onchain lending protocol holds it in a smart contract. Each carries risk: the company can fail, and code can have bugs.

Custodial vs onchain

Look at the annual rate, any origination or withdrawal fees, and whether interest changes with the market. A low headline rate can hide a variable rate that rises later.

APR

Ask who holds the collateral, what triggers liquidation, how you add collateral in time, and what happens if the lender stops operating. Never pledge what you cannot afford to lose.

Due diligence

Educational only, not financial advice. Crypto prices move fast and you can lose what you put in. Some links are affiliate links; we may earn a commission at no cost to you.

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