How to save with the 1inch Card: Cryptodraft and Stableloans

The Cryptodraft and Stableloan features enable 1inch Card holders to make the most of their assets.

The 1inch Card powered by Crypto Life has been initially designed to improve interaction with cryptocurrency for users in their daily life. However, the 1inch Card offers much more than just a more convenient way to spend crypto, as it enables users to quickly borrow against crypto assets with 0% APR, potentially save on taxes and access additional benefits.

These advantages are available thanks to the Cryptodraft and Stableloan features. Both of them facilitate borrowing against crypto, with Cryptodraft offering flexibility and Stableloans providing fixed terms.

Cryptodraft: flexible access to extra funds

Cryptodraft is tailored for users who value flexibility. It offers users a convenient way to access additional funds without having to sell their assets. Users can deposit BTC or ETH and borrow up to 60% of their collateral’s value. The first 10% LTV of this borrowed amount is interest-free, while the remaining 50% is subject to a 1% monthly percentage rate (MPR).

Key features:

• Interest-free threshold: users can keep their loan to value (LTV) below 10% and enjoy cost-effective spending.
• Flexible repayment: partial or full repayments are possible, based on users' financial situations.
• High borrowing limit: up to 60% of the collateral value can be borrowed, providing significant spending power.
• Adaptable terms: the absence of a fixed borrowing period allows users to extend their Cryptodraft as needed.

Stableloans: fixed-term borrowing

Stableoans offer users a straightforward solution for borrowing, allowing them to set the loan amount and period between 6 and 24 months.

Key features:

• Fixed terms: loan periods of 6, 12, 18 or 24 months for better financial planning.
• Transparent pricing: interest rates are displayed upfront, ensuring clarity on borrowing costs.
• Interest-free portion: Users select their desired LTV when applying for the loan, and this choice remains fixed.
• Available crypto assets: users can currently select from USDC, USDT or EURT.
• Multiple active loans: a user with one active Stableloan can take other Stableloans.

Smart reasons to use Cryptodraft and Stableloans

Preserve your investments

The ability to access funds without selling cryptocurrency is particularly valuable for those who believe in their crypto assets’ long-term potential. By using crypto as collateral instead of selling it, users maintain their position in the cryptocurrency market, known for its volatility. The 1inch Card provides a buffer against this unpredictability by allowing access to funds without forcing sales during market downturns.

Achieve tax efficiency

In many jurisdictions, using crypto as collateral rather than selling it can offer substantial tax advantages. Instant conversion of crypto to fiat to pay for goods or services may be considered a taxable event, subject to capital gains tax.

However, while using Cryptodraft or Stableloans, a user doesn’t sell their crypto, and payments with borrowed coins are therefore not taxable.

Whether seeking flexible borrowing through Cryptodraft or a more structured approach with Stableloans, the 1inch Card offers innovative solutions for putting crypto to work.

Unlock the full potential of your crypto assets for everyday use with the 1inch Card.