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How does Lenme determine the Maximum Crypto-Backed Loan Amount? πŸ’°
How does Lenme determine the Maximum Crypto-Backed Loan Amount? πŸ’°

Explaining Lenme's algorithm in determining the maximum amount that a user can borrow in Crypto-Backed Loans.

Updated over 2 months ago

Maximum loan amount is determined based on the amount of crypto you hold on your account. πŸ’² The Loan To Value (LTV) is 50%, which means the maximum loan amount is half of the market value of the currency borrowers hold. πŸ’΅

I.e if you own a 1.5 ETH (Etherium) and the current unit price in USD is $2,514, so the market value of your crypto equals $3,771 and the maximum loan amount the borrower can request on Lenme is $1,885.5

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