The crypto-based lending platform SALT is now accepting Dogecoin as collateral. This feature means that users can lock up Dogecoin in exchange for a USD loan, and the company has explained why it chose to include the coin as one of its four options.
Dogecoin started out in 2013 as a joke coin that was not very different from Bitcoin (apart from its adorable mascot and torrent of memes). However, Dogecoin quickly became useful for real transactions due to its low transaction fees and general efficiency. SALT praises the coin with the following statement:
“Dogecoin has a rich history and incredible support from its community, is widely traded, offers high liquidity, and is built using the Bitcoin code base … it enables the company to connect with the broader crypto community in a fun, approachable way.”
SALT also notes that Dogecoin “has seen an uptick in value in recent weeks.” This price surge is due to last month’s release of Dogethereum, a network that bridges Dogecoin with Ethereum.
This event drove up Dogecoin’s market price, causing a resurgence in the coin’s popularity. Dogecoin was propelled through the ranks, and it now sits at #21 by market cap, although it is slowly declining.
SALT also added Litecoin to its list of collateral options earlier this month, following its initial support for Bitcoin and Ethereum. The platform is additionally allowing users to vote on the next cryptocurrency that they want to see added to SALT.
Suggested Reading : Learn more about Litecoin in our comprehensive introduction.
Other Loan Options
Crypto loan platforms in general are experiencing a fair amount of popularity at the moment: Aave and Lendingblock are two other platforms of this type. Loans allow users to liquidate their cryptocurrency without having to go through the trouble of selling or re-purchasing their holdings in a volatile market.
However, not all loan platforms are the same. Some allow you to arrange loans with peers; others (including SALT) are mostly centralized. Different types of platforms have different degrees of regulations and restrictions, meaning that choosing a loan platform may require some consideration.
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