SALT is excited to announce StackWise, its latest product for crypto-backed loan holders. With StackWise, loan holders get a portion of their monthly payment back to their crypto wallet in the form of crypto rewards.
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Rewards are available in Bitcoin, Ether, or USD Coin — customers can choose their reward type and can change it any time prior to their next monthly payment. Once a loan holder starts stacking crypto rewards, there are a couple of ways to use them:
- Leave the crypto rewards in their collateral wallet to reduce their loan-to-value ratio (LTV) and minimize the risk of Stabilization
- Withdraw their crypto rewards and use the funds as desired
Note: Anyone with a crypto-backed loan that originated since the release of StackWise (January 11, 2022) is eligible for StackWise Rewards. For customers with a loan that originated prior, they can contact loansupport@saltlending.com to refinance their loan or extend the current loan terms to start earning StackWise Rewards.
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Keep reading for more details on StackWise and how it works or visit SALT’s official StackWise page for rates and details.
How it works
How do I know how much of my monthly payment I’ll get back?
With the launch of StackWise, all loans are priced at an interest rate of 9.99% with a net rate (the actual rate after crypto rewards are factored in) that depends on your chosen LTV. You can reduce your net rate even further by redeeming SALT Tokens. Once you know your net rate, you can determine your rewards rate. For example, if you take out a loan with a 30% LTV and you do not redeem SALT Tokens, your net rate will be 7.50%, meaning your rewards rate will be 4.49% (9.99% interest rate – 5.50% net rate = 4.49% rate reduction or what we call “rewards rate”).
Taking this example, if the loan amount is $5,000 with a 9.99% interest rate, you’d expect to pay $499.50 in interest over the life of the loan.
With StackWise however, your rewards rate is 4.49%, which means you’ll get back 4.49% of the total loan amount over the course of the loan, effectively making your net rate 5.50%. Therefore if the term of your loan is 12 months, you will receive $18.71 back in crypto rewards each month for the duration of your loan. So instead of paying $499.50 in interest, you are getting crypto back each month, meaning your actual interest paid at the end of the loan will be $274.98, resulting in $224.52 saved on the cost of your loan.
And remember, the lower the LTV you choose, the higher your rewards rate and savings will be. Add SALT Tokens to the mix, and you can save even more on your loan (and no, you can’t buy SALT from us, but if you already hold SALT, you can redeem it for a lower net rate).
How do I review my StackWise rewards in my dashboard?
You can review your rewards anytime via the SALT desktop or mobile app. Once you login to your dashboard, you’ll see everything from your rewards rate to rewards schedule, to your next reward amount and your total rewards earned. You’ll also see a section titled “Receive Rewards in,” which allows you to change your selection between BTC, ETH, and USDC. For example, if you set your rewards to BTC for the first 2 months of your loan and then decide to switch to USDC for the remaining months, you’ll see your initial BTC rewards in your Bitcoin wallet and then will begin to see your following rewards in your USDC wallet.
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