We Now Accept Litecoin (LTC) as Collateral for Crypto-Backed Loans

Lantern Finance is excited to announce that Litecoin (LTC) is now accepted as collateral for crypto-backed loans!

This new addition empowers our users to leverage their LTC holdings without selling, providing greater liquidity and financial flexibility.

Why Litecoin Is A Smart Collateral Choice?

Litecoin, often called the "silver to Bitcoin’s gold," has been a cornerstone of the cryptocurrency space since its inception in 2011. Known for its speed, security, and cost-effective transactions, Litecoin has gained widespread adoption and remains one of the most actively traded digital assets.

By adding LTC to our list of supported collateral, we enable users to unlock the value of their holdings while retaining ownership. Whether you need liquidity for investments, business opportunities, or unexpected expenses, Lantern Finance provides a seamless borrowing experience with Litecoin.

How A Litecoin Crypto Loan Works

Our crypto-backed loan process is straightforward, allowing you to access liquidity while keeping your LTC safe with our qualified custodian, BitGo.

1. Design Your Loan – Choose the loan amount and determine how much LTC to use as collateral.

   

2. Collateralize Your Litecoin – Safely transfer your LTC to our insured BitGo cold wallet.

3. Access Your Funds – Once your collateral is deposited, we’ll approve and disburse your loan in fiat or stablecoins, directly into your bank account or preferred wallet.

4. Repay Your Loan – Flexible repayment options allow you to settle your loan and reclaim your Litecoin collateral.

It’s that simple! Your Litecoin remains secure while you leverage its value for liquidity.

The Benefits of Using Litecoin as Collateral

• Maintain Ownership & Liquidity – Get cash without selling your LTC and avoid triggering capital gains taxes prematurely.

• Trusted & Established Asset – Litecoin has maintained credibility for over a decade with a strong track record of stability and security.

• High Market Liquidity – As one of the most actively traded cryptocurrencies, Litecoin ensures loan amounts reflect real-time market value.

Who benefits from LTC-backed loans?

• A crypto investor needs short-term liquidity for a real estate down payment but doesn’t want to sell LTC and incur capital gains tax.

• A business owner needs capital to scale but prefers to borrow against Litecoin rather than liquidate assets.

What LTV (Loan-to-Value) ratios are available for LTC?

At Lantern Finance, Litecoin-backed loans come with LTVs between 0%-25%, a 13% interest rate and a 2% upfront fee added to the Annual Percentage Rate (APR 15%). This ensures a transparent borrowing structure with no hidden fees, allowing you to access liquidity while keeping your LTC secure.

This means:

• If you deposit $10,000 worth of LTC as collateral, you can borrow up to $2,500 in fiat or stablecoins.

• Your collateral remains securely stored with BitGo, an insured custodian.

Are there any hidden fees?

Use our APR calculator to determine the exact amount you'll be paying. Other than the APR you see for your collateral, we don't charge you with any hidden fees.

What happens if the LTC price drops?

If the value of your Litecoin (LTC) collateral decreases, it affects your Loan-to-Value (LTV) ratio. At Lantern Finance, we have specific protocols to manage this:

1. Margin Call at 65% LTV: If your LTV reaches 65%, we'll issue a margin call, notifying you to either:

   • Add More Collateral:

     Deposit additional crypto to lower your LTV.

   • Repay Part of Your Loan:

     Reducing your loan amount also brings your LTV back in line.

2. Liquidation at 75% LTV: If your LTV rises to 75% and the margin call isn't addressed, we may liquidate a portion of your collateral to restore the LTV to acceptable levels.

Are there early repayment penalties?

No, Lantern does not charge any penalties for early payoffs.

What happens if I can’t repay on time?

If you're unable to repay your loan on time, Lantern Finance offers flexible options to assist you:

1. Loan Refinancing: At the end of your 12-month term, you can refinance your existing loan, effectively extending the repayment period and adjusting terms to better suit your current financial situation.

2. Early Repayment Without Penalties: If you anticipate difficulties in the future, you have the option to repay your loan early without incurring any penalties, allowing you to manage your finances proactively.

Is there a minimum and maximum loan amount?

Lantern's minimum loan amount is $1,000. There is no maximum limit to borrowing.

Getting Started with Litecoin as Crypto Loan Collateral

Ready to put your Litecoin to work?

1. Log into your Lantern Finance account (or sign up if you’re new).

2. Select Litecoin (LTC) as your preferred collateral.

3. Start borrowing against your crypto with confidence.

Looking Ahead

We’re committed to continuously expanding our platform to offer greater financial freedom and flexibility. The addition of Litecoin is just the beginning—stay tuned for more supported cryptocurrencies and enhanced borrowing options in the future.

If you have any questions, our support team is here to help.

Unlock the value of your Litecoin today—head over to Lantern Finance and start leveraging your LTC for crypto-backed loans! Sign up today.