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?
Hmm, that's silly mate !
I never experienced a bitcoin-backed loan. But To be honest for Mee it's unusual to take a loan as collateral of Bitcoin. Because there is no one who can be trusted as collateral for Bitcoin, that is, no one is able to give you a complete guarantee that your Bitcoin is safe, even if there are no exchanges. Everyone is well acquainted with the fact that no one can keep your Bitcoin safe except yourself. However, even if a loan is agreed upon, it is not completely certain that he will return your Bitcoin tomorrow.
So I don't like it for myself to hold my Bitcoin in someone else's hands. I can't put myself at risk for a loan. My opinion is that the OP should exchange some BTC of his Bitcoin for fiats and enjoy his family vacation and take the idea of a Bitcoin backed loan from his heart because you should give his Bitcoin to other hands and You are putting yourself at risk by giving it to others.