Borrowing on Luindy, explained: SOL loans and asset-backed loans
Two ways to borrow without selling what you own: instant SOL loans against USDC or USDT, and stablecoin loans against gold, other assets you can document, or your project. Rates, terms, repayment and what happens if things move against you.
By Luindy Editorial8 min read
Selling an asset you believe in to raise cash is expensive twice: you may owe tax on the sale, and you lose the upside if it rises. A secured loan lets you keep the asset and still get what you need. Luindy offers this in two ways: an instant SOL loan against your stablecoins, and a stablecoin loan against assets you own or a project you run.
Instant SOL loans against stablecoins
You hold USDC or USDT and want SOL without spending your dollars. Lock the stablecoins as collateral and the SOL lands in your Luindy wallet in the same minute. You can borrow up to 50% of the collateral value at a fixed 6.0% APR, for 30, 90 or 180 days. Because your collateral is a stablecoin, its value does not fall. The risk sits on the loan side: if SOL rises sharply, the loan is worth more relative to your collateral and your loan-to-value climbs.
We warn you by email at 65% and again at 75% loan-to-value. If it reaches 85%, or the term ends with the loan unpaid, the loan is settled: enough of your collateral to cover what you owe plus a 5% fee is kept, and the rest comes back to your wallet. Repay early any time, in part or in full, at no cost.
Stablecoin loans against assets or your project
You need dollars and hold something of value that is not on a blockchain: gold in a vault, other assets you can document, or a business with a track record. Apply in the app with the documents, and a person at Luindy reviews it. We may ask for more paperwork or a short conversation. If we approve, you see the exact terms before accepting anything: principal, fixed rate, term of 90, 180 or 365 days, interest paid monthly, principal at the end.
If you hold no asset, you can still apply with your project or business documents and a clear plan for the funds. Terms for these loans reflect the review, and approval is never guaranteed. Once the agreement is signed and everything is in place, the loan, less a 0.25% origination fee, is paid from the Luindy pool to your wallet.
What it costs
| Item | SOL loans | Asset-backed loans |
|---|---|---|
| Origination fee | 0.25% of the amount borrowed | 0.25% of the amount borrowed |
| Interest | Fixed 6.0% APR, accrues daily | Fixed rate set on review, paid monthly |
| Early repayment | Free | Free |
| Settlement fee | 5% of collateral used, only at 85% LTV or an unpaid maturity | None; missed repayments are handled under the agreement |
A worked example
You lock 1,000 USDC and borrow 5.13 SOL at $97.50 each, so $500 and a 50% loan-to-value. Origination is $1.25, taken from the collateral. Over 90 days interest is about 0.076 SOL. If SOL rose to $165, your LTV would reach 85% and the loan would settle, but you would have been warned at $127 and $146 on the way and could have repaid at any point.
Keeping a SOL loan safe
- Borrow less than the maximum. A loan at 30% loan-to-value needs SOL to nearly triple before settlement.
- Keep notifications on. Luindy emails you at two levels before anything happens.
- Repay in parts as you can. Every repayment lowers your loan-to-value and stops interest on that amount.
- Keep some stablecoins unlent so you are never forced to wait for a position to mature.