The cryptocurrency exchange Kraken has launched its crypto-collateralized loan product called Flexline. Kraken Pro users can borrow without selling by using supported crypto assets as collateral. Fixed-rate loans offer terms from 2 days to 2 years, with payments provided in crypto or stablecoin for trading on the platform or withdrawable. Annual interest rates range between 10% and 25%. Collateral is held in segregated wallets and featured in Kraken’s 1:1 verified Proof of Reserves reports. Collateral can be liquidated if maintenance requirements are violated or not paid at maturity. Early repayment can be made with account balance but incurs a fee. The product is not available in Australia, Brazil, Canada, India, New Zealand, Switzerland, UAE, UK, and USA.
Source: KrakenKraken Flexline Features and Risks
- Collateral Ratio: Dynamic maintenance margin minimizes liquidation risk.
- Interest Structure: Fixed rates are not affected by market fluctuations.
- Security: Transparency is provided with Proof of Reserves.
This announcement came one day after Kraken announced tokenized stock perpetual futures on its regulated derivatives platform. The crypto-collateralized lending sector is reviving on exchanges, in DeFi, and traditional finance. Coinbase expanded loans up to 100.000 USDC against tokens like XRP, DOGE, ADA, and LTC. US mortgage provider Rate accepts crypto reserves for underwriting with RateFi. DeFi protocols have TVL of 51,9 billion dollars, debt 30,8 billion dollars; Aave 26,9 billion dollars, MORPHO detailed analysis leading with 5,8 billion dollars. Apollo Global Management partnered with Morpho for up to 90 million MORPHO tokens.
Source: CoinbaseOnchain lending protocols. Source: DefiLlamaCritical Support and Resistance Levels for MORPHO
MORPHO price 1.84 USD, 24-hour change +%13.06. RSI 72.44 (overbought), uptrend continues but Supertrend giving bearish signal. EMA 20: 1.4569 USD.
- Supports: S1 1.7499 USD (⭐ Strong, -%5.15), S2 1.4625 USD (⭐ Strong, -%20.73)
- Resistances: R1 1.9650 USD (⭐ Strong, +%6.50), R2 1.8514 USD (⭐ Strong, +%0.35)
The revival in the lending sector could increase MORPHO futures volume. Competition with Aave is intensifying.
Frequently Asked Questions About Kraken Flexline and MORPHO
In which countries is Flexline unavailable? Not available in the 9 listed countries such as Australia, Brazil, Canada, etc.
Why did MORPHO rise? DeFi TVL increase and Apollo partnership triggered lending demand, momentum strong with RSI 72.44.
How to prevent liquidation in Kraken loans? Maintain the collateral ratio by monitoring the maintenance margin.
Source: https://en.coinotag.com/kraken-flexline-crypto-loans-and-morpho-rise
