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OKEx has announced the launch of the C2C loan feature

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OKEx is entering the world of DeFi by launching its C2C loan feature. According to Director of Financial Markets Lennix Lai, this will create an "open and transparent market to match the demand and supply of inactive capital."

There was a time when cryptocurrency exchanges were quick to list most of the tokens. Now they are competing on completely new terrain. From IEOs to cloud services, creativity has no limits. Today, OKEx has launched its new C2C loan feature in an attempt to provide its users with a peer-to-peer loan service.

“C2C community loans create an open and transparent market to match the demand and supply of inactive capital. The interest rate is also governed exclusively by market competition, unlike other similar products where its rate setting is really a black box. "

According to an announcement on the company's blog, the C2C loan feature will allow people to transact directly and meet the various loan and investment demands of its users. To access this new feature, users will need to update the OKEx application to the latest versions and then click on "C2C Loan" on the application's home page.

If you want to borrow money from a colleague, you will need to put BTC as collateral. Your loan will be repaid in USDT, although OKEx says more assets will be backed in the future.

Among some of the interesting features of C2C loans are the fact that users have various options available to them. For example, borrowers can choose the rates they want to pay and how long the loan will last.

What happens if you do not pay the loan?

Just like taking out a loan, there are some possible risks with the C2C loan feature. For example, the borrower may not be able to repay the debt. OKEx has a system for this.

If the collateral falls below a notice line, the system will send borrowers a warning message stating that they must increase their collateral (the initial amount of BTC canceled). If they don't, the platform will close the position when the price reaches the closing line.

This means that the borrower can lose his BTC, but the lender will not run out of money in case of default. For more information on this new feature, see the OKEx FAQ on the subject here.

OKEx is effectively expanding to offer better financial products to a broader network of users. Beyond spot and derivatives trading, it looks like this is another company that is rolling the dice on DeFi's future growth.

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