Now that bitcoin has continued to fail as both an investment and a currency, the new narrative is a "store of value" in some nebulous sense, but they've acknowledged it won't be replacing fiat, so the new story is: You can take a loan out on your Bitcoin!
How does this actually work?
Here's a comparison of some of the providers policies in this area:
https://saltlending.com/wp-content/uploads/Competitor-Analysis-Letter-Size-9-2-2025-1.pdf
From what I gather, you have to stake on average, about 2x the value of the loan you want (LTV 50%), then there's quite a predatory interest rate as well as a percentage "origination charge." Probably even more charges than that.
Anybody have experience with this?
Is this just a creative vehicle to get out of paying taxes, assuming you don't pay income tax on loans, whereas if you liquidated your crypto, that would be a capital gain?
Is Crypto's version of "being your own bank" basically using predatory payday-type loan sharks?