MyConstant Review – Earn Up to 7% on p2p lending platform

Borrowing money from a brick-and-mortar bank or conventional online lenders has always been challenging. Bad credit, low income, or fundamental biases keep potential investors and borrowers out of the equation.

MyConstant is trying to solve this. Stepping away from the conventional regulated financial institution. Moving towards peer-to-peer lending in the crypto space.

Similar to other p2p lending platforms, MyConstant pairs investors to borrows through crypto-backed loans.

In this post, will pull back what MyConstant offers and see if its automatic 4% APY is too good to be true.

Who’s MyConstant?

Founded 2019 Duy Huyn first as a stable coin but has since transformed into a robust crypto-lending platform.

Offering crypto-backed loans against a larger list of cryptocurrencies and stable coins. The current CEO is Zon Chu and constant features a number of new product lines.

The team is spread out all over the world with employees in Singapore, United States, Netherlands, and Vietnam. MyConstant is headquartered in Redlands, California. Other major offices can be found in Ho Chi Minh, Vietnam.

The goal of MyConstant platform was designed to steer away from traditional banking institutions. Helping crypto enthusiasts to get more out of their crypto.

What Does MyConstant Do?

Peer-to-peer lending isn’t a new idea. Traditional platforms like LendingClub or Upstart have been around for some time now. Where MyConstant differs is the fact that it’s a crypto-backed non-custodial p2p lending platform.

Providing crypto-backed loans against an ever-expanding list of crypto assets. Constant matches investors with borrowers looking to get a loan. Investors can lend their Bitcoin or other crypto assets while earning interest.

For the borrower who is loaned fiat or cryptocurrency. They’d pay it back in addition to interest over a period of time. This is then returned back to investors according to their own rates and terms.

Borrowers don’t need to worry about traditional credit scores being a factor for risk assessment. Rather the team looks at crypto as being a form of collateral. Users can borrow against 72+ cryptocurrencies to get the cash they need.

Although this what the service boils down to, Constant offers a packed product line. For example, products such as Flex account can earn you an automatic 4% APY fiat deposits. More of the features constant provides can be seen below.

MyConstant Features

Invest with Constant

Flex Account

Constant offers investors the ability to unlock the value of their cryptocurrency in a few ways. The first way is with a Flex account.

Investors who place their funds in a Flex account can earn an automatic 4% APY. Funds are held in an open-source, blockchain protocol.

The Interest earned is paid every second. Earnings can easily compound thus accelerating your earnings on funds. There are no terms, users can withdraw funds anytime.

The assets supported are fiat and stablecoins. Flex is enabled by default but can be disabled from your Accounts page.

User will no longer earn on their funds, and funds will remain in Prime Trust custody

How Flex Handles Deposits:

The model is similar to conventional banks where users deposited funds are pooled together with others and lent to borrowers.

The main difference is with MyConstant you get a way larger portion of the interest rates.

Also, a protocol sets the rules and instructions which is executed through a smart contract.

When you deposit your funds, it converted into a supported asset with USD to preserve value. According to Constant, funds are then sent to a pool of assets.

Once in the pool, it is converted to cTokens. The cTokens represent users’ balance and which allows the protocol to handle multiple asset types.

Crypto-Backed Loans

There are lots of bitcoin investors who never plan to sell their coins. Instead there looking for better ways to unpack its value.

This can be done with MyConstant Crypto-backed loans. Users cryptocurrencies can be offered up as collateral intern gaining access to fiat.

This is the perfect option for long-term Hodlers. With Crypto backed loans investors can unlock the value of their cryptocurrency without never having to sell.

These crypto-backed borrowers receive fiat from a peer lender. If you’re one of those lenders you can receive an APY of up to 7%. Lenders can choose the terms which can range from 1 month, 3 months, or 6 months.

Lenders don’t have to worry about defaults as defaulting borrowers’ crypto collateral can be sold for liquidity.

CRYPTO-LEND

Crypto-lending is the third-way investors can earn on their funds. Users who invest in their cryptocurrencies can get up to 8% APY. Supported coins that can be offered are BTC, ETH, and BNB.

Once you agree-upon an interest rate user deposited crypto is sent to a lending pool. Than being redistributed among other exchange partners.

The crypto lent provides liquidity to exchanges like Incognito pDEX and other swapping partners. These exchanges give a cut of their trading fees back to you, the crypto lender. There are no terms, users can withdraw funds anytime.

Interest rate is earned every second crypto is lent. MyConstant does say “All lending backed by MyConstant Guarantee” although we couldn’t figure out to what limit.

How Borrowers Benefit

Crypto-Backed Loan

We touched a little on this earlier. Crypto-backed loan gives crypto holders the ability to cash out or get new coins through collateralization.

MyConstant p2p lending platform is unique in the fact that matches lenders with borrowers to achieve these sorts of loan offerings. Interest for these sorts of loans can reach 6% APR.

Borrowing terms can extend from 1 month, 3 months, or 6 months and is paid immediately when the term is finished.

Collateral given is stored in Prime Trust cold wallet or password-protected web wallet. Over 72+ currencies are supported which is great as it doesn’t limit the assets used.

Other Features

MyConstant GiftCard – Constant doesn’t just stop with its p2p lending platform investors can also participate in their gift card program. The Constant gift card program is pretty unique in the fact that other platforms don’t have this.

Users can choose from 40+ retailers and get their cards immediately at no extra fee. Users who participate can shop and save up to 3% on their favorite brands.

At the time of writing this review, this 3% cashback may be subject to change. Constant gift card currently allows users a maximum order of $5,000 USD per month.

Referral Program – With the referral program, Constant users can benefit from a $10 bonus for each friend that gets referred to the platform. You’ll also earn 10% on your funds in the flex account.

Bonus is only earned when the referee sign-ups, passes the KYC process, and makes a deposit. The referral bonus can increase through Constant’s membership program.

Membership Program – MyConstant provides its users with a membership rewards program. Investors and borrowers can gain access to three cards, cards being Gold, Platinum, and diamond.

Each card has its own exclusive benefits and works off a point base system. For every dollar invested or borrowed users will earn 1 point in return.

Users need to continually top up their accounts as points last 180 days from the day they’re earned.

Membership Card Breakdown:

Gold (25,000 points) – $15 dollar for friends referred to the platform. 15% on earned interest from Flex accounts of referred friends during their first year.

Platinum (50,000 points) – In addition to leaving a review on Trust Pilot. Users who first reach platinum levels will receive $50 credit to your MyConstant account. $17.5 credit for friend referrals and 17.5% of all earned interest in the flex account from the friend referred.

Diamond (100,000) – In addition to leaving a review on Trust Pilot. Users who first reach platinum levels will receive $50 credit to your Constant account. $20 credit for friend referrals and 20% of all earned interest in the flex account from the friend referred.

An automatic bump to matching que found in MyConstant. Last Diamond members will receive 1 STAR token to redeem for a 1% bonus or discounted interest.

Is Constant Legit?

The services Myconstant provides are legit. As the constant platform is designed to mitigate as much risk as possible.

In theory, the process of crypto-backed loans relies on the borrower offering up collateral in the form of digital currency. Requiring them to put up to 200% of the loan amount as crypto collateral.

If a borrower were to default, Constant will sell the collateral and repay you. The p2p lending platform has greatly increased its user base.

Sports loads of positive reviews from review websites like Trust Pilot. The company is registered and regulated in the United States.

What also contributes to this legitimacy is its phone support and messenger functionalities. This doesn’t mean that no risk is involved with investing in the platform.

As with any crypto platform out there, we advocate to never put up any amount of funds that your not willing to lose.

Investing Risk With Myconstant

Although Constant is a great platform to unlock the value of your cryptocurrency it does come with risk. Risk can come from the cryptocurrency market. Cryptocurrency like Bitcoin is volatile as it can experience large corrections.

During these larger drops or corrections, it could be hard for Constant to cover up the value of what is owed to lenders.

As we mentioned earlier, Constant does sell borrower collateral if they default on the loan given. Constant also has a set loan-to-value (LTV) in place for collateralized crypto.

Notifying borrowers if the LTV drops past a certain threshold. Overall, this means there are safeguards set in place to protect user investments from major market crashes. Yet this doesn’t mean your funds are guaranteed to be recovered.

Myconstant is an investment platform and not a bank. Sidestepping typical insurances for Flex account users. As there is no FDIC insurance like traditional financial institutions.

MyConstant doesn’t do the best job putting out this info and we wish it was a bit more accessible.

Customer Support and Feedback

Phone support is uncommon to see with crypto companies. This isn’t the case with Constant, phone support is offered Monday through Friday.

Having teams in both the US and South East Asia that manage their designated time zones.

Customers may also reach them across multiple online channels like social media or messenger. Constant has a customer support center where immediate questions on their services can be answered.

Constant is active on most social media showing nice engagements among their customer base.

As we mentioned earlier, Constant is on Trust Pilot, and from what we notice there were loads of positive reviews.

Many users sang high praises for the platform. Enjoying its’ simplicity and hassle-free investment style.

MyConstant p2p Lending Platform Rap-up?

Constant is a great way to unpack the value of your cryptocurrency without having to sell it. Replacing the traditional barriers seen from a conventional investment or bank account.

Users can experience the full potential of their investments earning up to 4% APY in a fully secured flex account every second.

Allowing users to free withdraw as often as would like. Users who choose to go beyond this have the ability to crypto lend to increase their earning potential. As investors can earn up to 8% without having to lock up their funds for long periods.

Beginners, intermediate, or advance it does not seem to matter Constant seems to have options for every type of investor.

For Borrowers constant places a lessened importance on credit scores as a factor for risk assessment. Rather giving borrowers loans that are backed by crypto.

Loans are available immediately. Collateral returned at the end of the term agreed upon. Constant reduces risk by selling borrowers collateralized if they default or find LTV ratio is down.

In the grand scheme of things, Myconstant is a small fish in a big pound that offers a wide range of services.

There are alot of other platforms like Nexo or BlockFi that do offer a more competitive APY.

Constant still looks like a great place to invest your crypto. We look forward to what else the platform has to offer as continues to grow its offerings