CoinRabbit is a crypto investment platform that combines the main services used by crypto holders: lending, savings, swapping and storage. CoinRabbit users can utilize their crypto as collateral to get a loan, deposit stablecoins to earn yield, seamlessly swap between different types of cryptocurrency, and store their holdings securely.
Rather than focusing on speculative trading, CoinRabbit caters to investors looking for long-term capital preservation. It offers liquidity management through instant payments, lending, yield opportunities, as well as a Private Program for high-net worth clients.
KYC verification is optional on CoinRabbit, but users that don’t verify their identity via KYC have a daily withdrawal limit.
The CoinRabbit platform has been operating since 2020, showcasing its ability to navigate diverse market conditions ranging from the depths of the bear market to the exuberance of the bull market. Since its inception, CoinRabbit users have used the platform to access nearly $1.5 billion worth of loans.
While CoinRabbit is based in Canada, its website highlights a decentralized team structure that enables operations across multiple time zones and regions, making the platform capable of effectively servicing clients across the globe.
Before we take a closer look at the platform in our CoinRabbit review, let’s first summarize its main advantages and disadvantages:
Pros:
- Good flexibility of LTV ratios for crypto-backed loans
- Unlimited max loan duration
- Users can earn solid yield on their USDT or USDC
- Very large variety of supported cryptocurrencies (340+)
- Dedicated mobile app for Android, iOS app in development
- Human-first support with a real team, available 24/7
Cons:
- CoinRabbit is a custodial platform, which might be a deal-breaker for some users
- The crypto swapping feature is rudimentary and doesn’t support features like limit orders
CoinRabbit lending
CoinRabbit provides overcollateralized lending, which means that the value of the collateral you supply must always be higher than the value of the funds you borrow. The ratio between the two is called the LTV (loan-to-value) ratio.
CoinRabbit provides loans at various LTV ratios: 50%, 65%, 80% and 90%. Loans at lower LTV ratios have lower interest rates, and are also less likely to get
Interest rates for CoinRabbit loans currently range from 11.95% to 16.8%. These rates are competitive with other crypto lending platforms at comparable LTVs.
Loans offered by CoinRabbit are further split into two categories: long-term and short-term loans. Long-term loans have a higher interest rate, but have an indefinite duration. Meanwhile, Short-term loans have a lower interest rate, but have to be repaid within a set time frame.
The LTV ratio thresholds for liquidation on CoinRabbit range from 80% to 95%, depending on the type of loan. Although the increased risk of loans with high LTV ratios is certainly not for everyone, the flexibility of different LTV ratio loans offered by CoinRabbit is ultimately a positive for borrowers since it provides more choices.
The platform currently accepts over 340 different crypto assets as collateral, which is a very diverse selection when compared to its key competitors. After initiating the loan, users typically receive the funds within 10 minutes.
After taking out a loan, users receive real-time updates about the status of their loan, and are notified if the loan’s LTV ratio is approaching a risk zone. There is also an option to automatically top-up collateral if necessary (otherwise, this has to be done manually).
CoinRabbit has a no rehypothecation policy
Notably, CoinRabbit does not use rehypothecation on the assets users provide as collateral, which significantly reduces risk for borrowers. Rehypothecation is when funds deposited by borrowers as collateral are re-used by the lender to cover their own obligations. This introduces additional risks, as third-party defaults can result in the lender becoming insolvent and unable to return collateral to borrowers.
By not re-using or managing client funds, CoinRabbit reduces the risk for borrowers and ensures that they always have access to their collateral once the loan is repaid.
Private program for large clients
CoinRabbit’s Private Program is designed specifically for large clients that have a total loan amount of $500,000 and more. This includes clients such as high net worth individuals, family offices, investment companies and fintechs.
The Private Program provides a premium, tailored service that includes a dedicated personal success manager and the ability to request custom solutions aligned with specific client needs. The dedicated manager provides proactive alerts about the state of the client’s portfolio, provides customized guidance and offers 24/7 support.
Members benefit from exclusive perks such as access to private crypto events and meetings. The program’s core advantages include customized lending terms with reduced rates, flexible loan restoration options, direct bank transfers, OTC services, and cross-collateralization, enabling clients to use multiple assets as collateral to optimize their borrowing capacity.
CoinRabbit Savings Account
The CoinRabbit Savings Account is a feature that allows users to earn interest on deposited crypto assets. Interest is accrued daily, and users can withdraw their funds at any time without penalties.
Here are the current APYs offered by CoinRabbit on its Savings Account feature:
It’s important to note that CoinRabbit supports both USDT and USDC on various blockchain platforms. For USDT, this includes Ethereum, TRON, BNB Chain and Polygon. Meanwhile, the supported chains for USDC are Ethereum and Solana.
As is usually the case when it comes to lending crypto assets, the highest interest rates are earned through stablecoin lending.
Other features
Crypto swapping
CoinRabbit provides an intuitive crypto swapping feature that allows users to seamlessly swap between more than 340 different cryptocurrencies. Users simply select the cryptocurrency they want to send and the cryptocurrency they want to receive, and receive a transparent quote with fees already calculated into it.
Generally, we wouldn’t recommend using CoinRabbit as a substitute for a fully-featured cryptocurrency exchange, since it doesn’t have useful features like limit orders. However, their swap feature can certainly come in handy if you’re just looking for a fast and convenient way to swap between different coins.
CoinRabbit app
CoinRabbit has a mobile app for Android, with the iOS version currently in development. The app is very simple to use, allowing users to manage the assets they hold in their CoinRabbit account, monitor the status of existing loans and open new loans, swap between the different cryptocurrencies supported by CoinRabbit, and deposit funds to earn yield via the platform’s savings feature.
The app implements multiple features to help users secure their account. This includes the (optional) use of 2-factor authentication through an authenticator app, requiring touch ID or a passcode to access the app, and the ability to whitelist addresses (funds can only be withdrawn to whitelisted addresses).
The bottom line
CoinRabbit is a flexible crypto lending and savings platform with a solid track record since 2020, offering overcollateralized loans with a wide range of LTV options, competitive interest rates, and fast funding times. Its support for more than 340 assets, real-time loan monitoring, and lack of rehypothecation make it appealing to borrowers, while its savings feature provides solid yields, particularly for stablecoins.
Although its swapping tool and app are geared more toward convenience than advanced trading, CoinRabbit delivers a well-rounded user experience with strong security features and additional benefits for high-value clients, making it a reliable option for users seeking straightforward crypto-backed loans and passive income opportunities.
Source:: CoinRabbit Review: Crypto Investment Platform with Lending, Savings, Private Program & More