{"id":4438,"date":"2021-02-22T20:39:19","date_gmt":"2021-02-22T20:39:19","guid":{"rendered":"https:\/\/tokpie.io\/blog\/?p=4438"},"modified":"2024-10-19T18:48:39","modified_gmt":"2024-10-19T18:48:39","slug":"how-to-borrow-bamboo-tokens","status":"publish","type":"post","link":"https:\/\/tokpie.io\/blog\/how-to-borrow-bamboo-tokens\/","title":{"rendered":"How to Get Cash Without Cashing Out BAMBOO tokens?"},"content":{"rendered":"\n

How to get the money today without cashing out your BAMBOO<\/a> tokens? It’s simple. Borrow BAMBOO against your existing tokens at fair-market rates. You don’t have to pass KYC. Also, you will not face minimum amounts and penalties for early repayment.  <\/p>\n\n\n\n

How to Get Money Without Cashing Out BAMBOO<\/h2>\n\n\n\n

In the below example, Bob wants to get 137 USDT by using Bamboo tokens as collateral. So, let’s see how to earn money without losing BAMBOO tokens.<\/p>\n\n\n\n

Step 1. Sign in to Tokpie exchange<\/h3>\n\n\n\n

Bob signs up<\/a> or logs in<\/a> to Tokpie.<\/p>\n\n\n\n

Step 2. Deposit Bamboo tokens<\/h3>\n\n\n\n

Bob deposits<\/a> 150 Bamboo tokens. For simplicity, let’s imagine that the Bamboo token price is $1.37. <\/p>\n\n\n\n

\"Deposit
Deposit Bamboo tokens<\/figcaption><\/figure>\n\n\n\n

Step 3. Issue Bamboo Promissory Notes<\/h3>\n\n\n\n

Bob opens the Borrow<\/a> section and selects a Promissory note title. For example, [BAMBOO_PN_15_Jun_2021]. It means a BAMBOO token Promissory Note with June 15, 2021 maturity date. Look at the screenshot below.<\/p>\n\n\n\n

Then he enters how many notes to issue. Let’s it be 100 notes. A one BAMBOO promissory note is a digital asset that gives its holder a right to get 1 BAMBOO token in the future (the future is a maturity date).<\/p>\n\n\n\n

Then, he selects BAMBOO tokens as collateral cryptocurrency. <\/p>\n\n\n\n

To complete the Promissory notes issuance, Bob clicks on the ‘Collateralized & Deposit’ green button. Note:<\/strong> Bob doesn’t get a loan when issuing Promissory Notes. It’s because he is the holder of these Promissory Notes.<\/p>\n\n\n\n

\"how
Issuing (depositing) Bamboo promissory notes<\/figcaption><\/figure><\/div>\n\n\n\n

After that, the BAMBOO Promissory Notes appear on his balance page<\/a>. So, now Bob can sell promissory notes to get a loan<\/em>. <\/p>\n\n\n\n

Step 4. Sell Bamboo Promissory Notes<\/h3>\n\n\n\n

To sell promissory notes, Bob selects BAMBOO Promissory notes by clicking on the related line here<\/a>. Then he presses on the SELL button, enters quantity, price, and clicks on the SUBMIT ORDER button as shown below.<\/p>\n\n\n\n

\"sell
Selling Bamboo Promissory Notes<\/figcaption><\/figure>\n\n\n\n

What is collateral, and how to calculate it?<\/h2>\n\n\n\n

A Collateral is an asset used to guaranty the repayment of Promissory Notes on the maturity date. Currently, you can use only BAMBOO tokens as collateral assets for issuing BAMBOO’s Promissory notes.<\/p>\n\n\n\n

The platform calculates collateral amount automatically due to the formula:<\/p>\n\n\n\n

(Quantity x Price \/ LTV) x 100, where<\/p>\n\n\n\n

Price<\/em> is a US dollar equivalent of the current highest BID of the promissory note.<\/p>\n\n\n\n

Quantity<\/em> is the number of promissory notes that are going to be issued.<\/p>\n\n\n\n

LTV<\/em> is a Loan-to-Value ratio that starts from 70% to 90%. It depends on the subscription plan<\/a>.<\/p>\n\n\n\n

How Can I increase Loan-to-Value (LTV)?<\/h3>\n\n\n\n

Tokpie users have Trial status with a 70% LTV by default. To get a higher LTV, a user can upgrade his subscription plan from Trial to the Light, Standard, Premium, or Enterprise status. Please review the plans here<\/a>.<\/p>\n\n\n\n

How Can I settle promissory notes before the maturity date?<\/h2>\n\n\n\n

Go to the Borrow<\/a> section and click on the related line’s settle button<\/strong> (screenshot below). As a result, the exchange unlocks collateral in a few seconds.<\/p>\n\n\n\n

Moreover, a user doesn’t pay any penalty for the settlement made before the maturity date (early repayment).<\/p>\n\n\n\n

What if I didn’t settle Promissory Notes before the maturity date?<\/h2>\n\n\n\n

The exchange settles promissory notes that you didn’t pay before the maturity date automatically. For example, if you issued 100 [BAMBOO_PN_15_Jun_2021] notes, the system will take 100 BAMBOO from your collateral amount and release the rest back to your account.<\/p>\n\n\n\n

What is the formula for Annual Percentage Rate (APR)?<\/h2>\n\n\n\n

The Annual Percentage Rate (APR)<\/strong> is the annual rate representing the ‘cost’ of borrowing. The formula is (1-price) \/ price\/number of days until the promissory note maturity date x 365 x 100%.<\/p>\n\n\n\n

Borrow APR<\/strong> is a percentage that shows the potential <\/em>cost of the loan here<\/a>. It’s called potential<\/em> because a borrower can settle promissory notes at any time before maturity.<\/p>\n\n\n\n

\"Bamboo_borrow_apr\"
Annual percentage rates for Bamboo tokens borrowing<\/figcaption><\/figure><\/div>\n\n\n\n

Shall I pay fees for BAMBOO tokens borrowing?<\/h2>\n\n\n\n

Yes, users pay small trading fees<\/a> (0.02%-0.1%) when selling and buying promissory notes. The fee’s size depends on a user’s subscription plan<\/a>.<\/p>\n\n\n\n

Is it profitable to borrow BAMBOO coins?<\/h2>\n\n\n\n

The borrowing strategies could be very profitable. They allow users to earn profit and hedge the risks of the BAMBOO token price dump. For example, you can do the following:<\/p>\n\n\n\n