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

What we believe

The internet works best when people own what they make, choose where their money goes, and understand the tools they use. That was the original promise of Web3, before hype and self-dealing crowded it out. We are here for the version worth keeping: take the good, leave the bad.

What we stand for

  • Clarity over hype. Plain language, real sources, no invented numbers.
  • Choice over lock-in. Tools and options that leave you free to leave.
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  • Independence. Brego Arts & New Media is self-funded and minority-owned. We answer to readers.

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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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