Main conclusions

  • BTokens are Binance wrapped tokens that allow assets to be used not only on their native blockchains, but also on other blockchains.

  • Binance Loans makes it easy to borrow Bitcoin and other cryptocurrencies, including BToken.

  • This article describes what wrapped tokens are and how to borrow BTokens using Binance Loans.

Binance Wrapped Tokens (BTokens) help users join the decentralized finance (DeFi) ecosystem. This article describes how to borrow BToken using Binance Loans.

BToken: wrapped tokens from Binance

Wrapped tokens are digital assets backed by a locked original asset on another blockchain. Such a system allows tokens to be transferred and used in networks that they do not initially support. Thus, wrapped tokens increase the interoperability of tokens and expand their use across different networks. You may have already encountered wrapped Bitcoin (WBTC), a tokenized Bitcoin that gives BTC holders access to financial options that are not supported on the native Bitcoin blockchain.

Binance has developed a set of its own wrapped assets called BToken to convert various crypto assets to Ethereum and access numerous DeFi applications and projects. Supported assets include Bitcoin (BTC), Ether (ETH), and DOT from Polkadot. You may have noticed that these tokens do not support the ERC-20 standard. But the BToken equivalents of these currencies, i.e. BBTC, BETH and BDOT, are ERC-20 versions of the underlying assets.

What are Binance Loans?

On Binance Loans you can borrow up to 65% of the collateral amount. Borrowed assets can be used for any transaction and even withdrawn from the platform. Binance Loans is suitable for users who need BToken liquidity but don't want to sell their assets. Below are other benefits of BToken loans on Binance Loans.

Flexible loan terms

We provide loans for 7, 14, 30, 90 and 180 days. Interest is calculated based on the duration of the loan in hours.

Early repayment

If you repay your loan early, we will only charge you interest for the hours during which you held the borrowed funds.

More than 100 borrowed assets

We offer over 100 borrowable assets and accept many cryptocurrencies as collateral.

Credit staking

You can stake certain assets (ADA, AVAX, BNB, CAKE, CTSI, DOT, KSM or NEAR) to reduce the interest rate. Please remember that assets used as collateral do not earn staking rewards.

Leveraging funds across the entire ecosystem

Borrowed funds can be used throughout the Binance ecosystem. They can even be taken out and used outside the platform.

How to Borrow BToken on Binance Loans

Any verified Binance user can borrow funds on Binance Loans. Here's how to borrow BETH on Binance:

Step 1: Log into your Binance account and select Crypto Loans from the Finance tab.
Step 2: Select BETH. Specify the asset to be pledged and for how long you want to borrow the BToken. Loan terms range from 7 to 180 days.

Step 3: Review the order information and click Confirm Loan - Confirm. That's all! You can now use the borrowed BETH.

You can also borrow BToken through the Binance app.

Crypto loan repayment

To return borrowed funds, follow the steps below.

Step 1: Login to your Binance account and open the orders page.

Step 2: Pay the interest first and then the principal. Please note that if you repay your loan early, interest will still accrue for the number of hours you held the borrowed funds. You will not be charged a penalty for early repayment.

Adjustment of loan/collateral ratio (LTV)

Binance Loans uses the Loan to Collateral (LTV) ratio to assess the level of credit risk. Once your LTV exceeds the liquidation LTV, the funds used for collateral will be forced to be liquidated to pay off the loan.

You can calculate LTV to avoid forced liquidation using the formula below:

LTV = loan amount / collateral amount x 100%

Loan amount = principal + interest

Check out the Binance Loans guide to learn more about how to calculate and adjust LTV.

That's all!

Binance Loans offers an easy way to borrow wrapped tokens. Ready to try new financial opportunities? You can transfer your BToken assets from the Binance ecosystem to another blockchain such as Ethereum. Always do your own research (DYOR) before making trades using borrowed cryptocurrency. Experienced traders who have completed their due diligence can start borrowing BToken assets on Binance today.

Detailed information is available at the links below:

(Academy) What are wrapped tokens?

(Academy) Beginner's Guide to Binance Loans

(Support) Guide to Crypto Loans on Binance

(Blog) Cryptocurrency loans: how to borrow cryptocurrency?

(Academy) What is an interest rate

(Blog) Is it possible to get a cryptocurrency loan without collateral?