Abra's loan product allows customers to borrow USDC without selling their crypto. It is a self-managed loan with instant loan approvals as long as you can supply the collateral for the loan.
The fee is currently 1% per year on collateral, billed monthly in arrears. Abra calculates the management fee monthly in dollars using the average daily collateral balance, adding the outstanding balance to the invoice, and sweeping it out of the reserves (USDC, BTC, ETH in that order). If there is not enough held in your reserve at the time, Abra rolls the balance forward to future invoices.
Getting Started
The entire process is split into 4 steps, supplying collateral, borrowing the funds, repaying the loan, and returning your collateral. This FAQ will cover the first two steps.
From https://prime.abra.com main page, you will log in and Tap on the 'Loan' icon on the left of your account dashboard to get started.
1. Choose the asset you wish to supply as collateral (Please note, if you want to supply BTC, you will need to reach out to your account manager to first get it wrapped). You will also need some ETH to pay the network fee.
Additionally, our Ops team wraps BTC in batches, which takes place once a day so if yours is not wrapped that day it will be done the following day with the next batch.
2. You will see a screen that reflects the min and max amount of how much you can supply as collateral from the asset you choose.
3. Tap: Review
4. You will then see the Confirm page.
5. Tap: Submit.
6. You will see a screen that reflects the min and max amount of how much you can supply as collateral from the asset you choose.
7. Tap: Review
8. You will see a screen that reflects the min and max amount of how much you can borrow based on your collateral.
9. The max allows the ability to borrow at 65% but Abra recommends borrowing less than 50%.
10. You will then see the Confirm page.
11. Tap: Submit.
12. Once tapping 'submit', the transaction will take some time to process.
13. You will then see the 'Assets Borrowed' section.
14. These funds are now accessible in your custody account to withdraw via USDC.
Please note, the photos above are an example only. The rate may vary.
You can now withdraw USD directly to your bank.
Where can I find additional information about my collateral?
What does LTV mean?
Comments
0 comments
Article is closed for comments.