What Is Binance Flexible Loan?
Binance Flexible Loan is an isolated, overcollateralized, and open-term loan product. It allows users to take multiple isolated loan positions. For instance, this could mean taking an ETH loan with TUSD collateral in one position and a BTC loan with USDT collateral in another.Binance Flexible Loan allows you to leverage Simple Earn Flexible Product assets as collateral to borrow any available cryptocurrency. Therefore, your assets will continue to earn rewards, allowing you to benefit from them even while you borrow against them.You must be wondering how the Binance can trust that the borrower will repay the loan. This contingency is built into the overcollateralized loan design, which requires the value of the collateral to be greater than the value of the digital assets offered to you. This means if you want to borrow 100 TUSD, you would first have to provide collateral worth more than that.You can repay the loan at any time in the same cryptocurrency as the borrowed funds. Thereâs no expiration date for open positions unless your position is liquidated or specific cryptocurrencies are no longer supported on the platform.