Hey guys. I don't want to sell my btc, but I need some money for my family vacation. I looked around several DeFi platforms where I can lock wrapped BTC and get stablecoins, also looked to companies like SALT and Unchained. I don't like 2 things: high interest rate and liquidations. Anyone took BTC backed loans? What is your experience?
I don't know if there is any such thing as bitcoin backed loans but I can speak of using your bitcoin as collateral when borrowing from someone who knows the values of your bitcoin but perhaps a lot of people wouldn't want that to be the case because it's might be hard to be sure you're the right owner of the assets in a wallet if evidence not tendered.
High interest rates and liquidation are the side effects of taking loans from those Defi so if you don't have any other source then you're left with no option than to take their offers.
But why would you have extra funds to fund your lifestyle? It's absolutely against the methodologies which we have in bitcoin AFAIK, you must have at least an emergency funds that can last for at least 3 - 6 months and if you did that you wouldn't be caught out with situations like this, and perhaps it seems yiu don't have another source of income to facilitate your desires, the solution here is find someone closer loan/ borrow from em then you pay back when the time is due.