Borrow against your Bitcoin and earn rewards

This guide will walk you through the process of opening a loan against your Bitcoin and claiming your rewards. But before we get started…

Here’s why you should consider getting a loan against your Bitcoin:

1. Keep your Bitcoin: Don’t sell the best-performing asset of our generation. You can borrow against it and buy more.

2. Unlock liquidity: Get instant access to cash. Spend it however you like with the Ready Card.

3. Get paid to borrow: Earn rewards (in STRK) on your collateral. Rewards are currently higher than the interest you pay, so you profit when you borrow.

If you want to repay your Bitcoin loan, borrow more, or add and remove collateral, check out this tutorial.

Let’s dive in.

How to borrow against your Bitcoin

1. Open the Ready app.

2. Click the Borrow cash instantly banner on the homescreen. Or, go to the Earn tab and select the Borrow & Earn banner 

3. Read the information, then tap Get started.

4. Read the liquidation risk information, toggle the switch, and tap Continue.

Bitcoin loans are overcollateralised. That means your collateral (Bitcoin) is worth more than the amount you borrow (USDC), reducing the risk of liquidation. 

Liquidation happens when your loan becomes too risky. If that happens, part or all of your Bitcoin is automatically sold to repay your loan.

Example: 

- Deposit $20,000 in Bitcoin (WBTC) as collateral
- Borrow $5,000 (USDC)
- Loan-to-value (LTV) = 25%, (calculated as loan ÷ collateral)

Liquidation only occurs if LTV reaches 78%, which would require a major drop in Bitcoin’s price

We do everything possible to encourage safe borrowing, with conservative limits and in-app notifications that alert you if your position is becoming risky.

5. Select how much USDC you’d like to borrow.

6. Select how much Bitcoin you want to add as collateral by tapping on Edit collateral. Then add your collateral amount and tap Confirm.

7. Review your loan summary and check the liquidation risk level. Tap Continue when you’re ready.

8. Review your transaction. Then tap Confirm.

9. Enable notifications if you have not already, this allows us to notify you on the status of your position.

10. Once the transaction is confirmed, your Bitcoin position is live. You can monitor it in the Investments section under Vesu Borrowing.

Nice work. You’re now earning interest on your Bitcoin. Feels good, right?

The next section will guide you through the process of claiming the rewards you earn on your collateral. 

Claim your rewards

1. Open the Ready app.

2. On the Assets screen, tap Investments. Then, find your Borrowing position and tap on it.

3. On your position screen, tap Collateral, then scroll down and tap Claim them now.

4. Review your transaction. Then tap Confirm.

5. When the transaction is complete, your STRK token rewards will appear in the Investments section near the top under Coins.

Bonus

Want to spend your rewards?

Swap your STRK for USDC, then spend it anywhere Mastercard is accepted with your Ready Card. You’ll earn up to 10% cashback.

‍Don’t have a card yet? 

Order it by tapping the card icon on the Assets screen.