Borrow against your Bitcoin and earn rewards

This guide will walk you through the process of opening a loan against your Bitcoin. 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 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 icon on the navigation bar. Or, go to the Invest tab and select the Bitcoin banner 

3. Borrow tab: Read the information, then tap Borrow up to [Limit]. You need at least $30 in Bitcoin to request a loan.

4. Read the liquidation risk information 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 Borrow tab.

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

The next section will guide you through the process of lending your Bitcoin by depositing to BTC Core Collateral.

Lending Bitcoin

1. Open the Ready app.

2. Tap the Invest tab. Then click the Bitcoin banner and find BTC Core Collateral.

3. Click Invest, enter the Bitcoin amount you want to lend, then tap Review investment.

4. Review your transaction. Then tap Confirm.

5. When the transaction is complete, you will see your lending position under Vesu and Lending in the Invest tab. Yield is auto compounding.

Bonus

Want to spend your rewards?

Swap your STRK for USDC, then spend it anywhere Mastercard is accepted with your Ready Card.

‍Don’t have a card yet? 

Order it by tapping the card icon on the Cash tab.