- Now an American crypto exchange Coinbase is issuing loans to residents of the country using cryptocurrency as collateral. Solana.
- The maximum loan-to-value ratio for SOL is set at 70%, meaning a holder of $10,000 SOL can receive up to $7,000 in USDC.
Coinbase added Solana as collateral for its crypto lending service, allowing US users to borrow up to $100,000 in USDC using their SOL as collateral. This is a positive development. news for Solana.
The integration took place on May 12th, making SOL now considered collateral alongside Bitcoin and Ethereum in Coinbase’s non-custodial lending product, built on the Morpho protocol on top of Base.
The maximum loan-to-collateral ratio for SOL is set at 70%. In practice, this means that the owner of $10,000 SOL can receive up to $7,000 in USDC. The collateral is locked in a smart contract on the blockchain.
There is no set maturity date, but if the loan-to-value ratio reaches the liquidation threshold, which incurs a 4,38% penalty, the position is automatically liquidated and the remaining collateral is returned.
Please note that borrowed USDC cannot be used for direct trading on Coinbase.
How has this integration affected the price of cryptocurrency? SolanaIts price, like that of the entire cryptocurrency market, fell by 3,1% to $90,92, so it is too early to talk about a strong positive market reaction.
The $94 level is now the nearest resistance. Reaching and holding this level upon retest will confirm the strength of the momentum.
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However, the addition of SOL as a third tier of collateral after Bitcoin and Ethereum, along with a total of $2,3 billion in crypto loans issued, means that holders with unrealized profits can access liquidity without selling, structurally reducing selling pressure.
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