This article was originally published here.
OKEx made a step into the DeFi world and launched its new consumer to consumer (C2C) loan feature that aims to match the demand and supply of idle capital transparently and openly.
The times when crypto exchanges were scrambling to have listings of the most active tokens are long gone. Nowadays, the competition takes place on completely new terrains like the ones of cloud services and IEOs, so OKEx wants to provide a peer-to-peer (P2P) loan service and launched its new C2C loan feature.
Users Will Transact Directly
The exchange says on its blog that the new C2C feature is going to allow direct transactions, whereas the demands for loans and investment will surely be met. Users can use the C2C loan button once they update their OKEx app. In order to buy money from peers, they will have to put Bitcoin (BTC) as collateral, after which they’ll get paid in USDT. More assets are to be supported soon, said OKEx. Some interesting features like choosing the rates for payments and the duration of the loan are also available for them.
What Happens If a Debt Isn’t Paid?
Just like with any other type of loan, there are risks involved with the C2C feature too. For instance, if the borrower is unable to pay the debt, OKEx employs its system especially built for such a situation. In case the collateral declines under the prewarning limit, the borrower is sent a warning message to increase it. If this isn’t done, the platform closes the position as soon as the price gets to the closing line. Borrowers will be in the position of losing their BTC, while lenders will be sure to not be left without their money.
OKEx is expanding more and more, trying to offer better tools and options to a variety of customers. Now it’s no longer a derivatives and spot trading service, but also a precursor of the DeFi’s development.