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In brief:
- CoinRabbit has lowered crypto lending rates, which now start at 11.95%.
- The platform provides different liquidation LTV options, ranging from a standard crypto loan setup to a more conservative risk management approach.
CoinRabbit announces a reduction in crypto lending rates across XRP loans and more than 300 other assets, reflecting its dedication to offering practical tools for capital preservation. With prices fluctuating sharply, selling crypto can lock in losses and reduce future upside, while borrowing against holdings allows users to maintain portfolio exposure and access liquidity.
Historically, CoinRabbit lending rates reflected prevailing market conditions, ranging from 17%. Today, rates start at 11.95%, with participants in CoinRabbit’s Private Program able to access even lower custom rates tailored to borrowing needs. Final rates are determined by the LTV ratio (50–90%) and loan terms, with options for both fixed-term and open-ended loans.
“Reducing rates is part of refining the financial model to make lending more efficient for diverse portfolios. In today’s dynamic market, the goal is to provide a capital preservation tool that offers liquidity while keeping assets invested,” said Walter Barrett, Chief Strategy & Growth Officer at CoinRabbit.
Liquidation LTV in Crypto Loan Management
A key aspect of risk management in crypto lending is the liquidation LTV: the ratio of the loan amount to the collateral value at which a loan is liquidated. On the market, the standard liquidation LTV ranges from 78% to 83%, meaning positions are liquidated once the collateral drops to that level.
CoinRabbit provides two options: a standard 80% liquidation LTV, and a 90–95% liquidation LTV for users seeking additional flexibility, as liquidation occurs later, giving a larger buffer for price drops. Let’s take a closer look at both options.
For example, an investor pledges $10,000 worth of XRP as collateral with the 90–95% liquidation LTV option. If they borrow $5,000 (loan amount), the initial loan-to-value (LTV) ratio is 50%. The position would only be liquidated if the collateral value falls to $5,500, corresponding to an effective liquidation LTV of 90%. Alerts are sent as the collateral approaches this threshold, giving borrowers time to adjust their positions.
For users with some experience in crypto lending, the 80% liquidation LTV option represents the standard across most platforms. Using the same example, if an investor pledges $10,000 worth of XRP and borrows $5,000, the position would be at risk of liquidation once the collateral value falls to $6,250. Alerts are similarly sent as the collateral approaches this level, allowing borrowers to manage positions effectively.
The choice ultimately depends on the user’s experience and preference for following the standard path (liquidation LTV 80%) or opting for a more conservative risk approach (liquidation LTV 90–95%).
| Platform |
Liquidation LTV |
| Aave |
78% |
| CoinRabbit |
80–95% |
| Arch Lending |
80% |
| Ledn |
80% |
| Nexo |
83% |
Comparison of liquidation LTV levels across popular crypto lending platforms.
How Lowered Crypto Lending Rates Work on CoinRabbit
- Choose collateral. You can use XRP, BTC and 300+ more assets.
- Choose loan terms. LTV ratio ranging from 50 to 90%, with options for short-term or open-ended loans. The lowered rate is displayed directly in the calculator.
- Send the collateral to the provided wallet address and receive funds. Loans are issued within 10 minutes.
- Monitor your loan. If the collateral’s value approaches the liquidation LTV, the system sends an alert. Users can then adjust their position to keep the LTV within a safe range.
More about CoinRabbit
CoinRabbit is a crypto asset management platform that helps you make the most of your digital portfolio. Built on the principles of sound money and long-term value, it lets you borrow against crypto, earn high yields, trade hundreds of assets, and preserve your capital.
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This sponsored press release was provided by a third party and is for informational purposes only. CCN and its editorial team has not verified the accuracy of its content, does not endorse it and expressly disclaim any liability arising from its use. Readers are solely responsible for conducting their own due diligence and research before taking any action based on the information contained here.
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