When navigating the complex world of centralized exchange (CEX) lending products, borrowers and depositors often face confusing terms and hidden risks. This guide compares top platforms—Binance, OKX, and Bybit—to help you make informed decisions.
Key CEX Lending Platforms Compared
Binance Flexible Loan: Borrower-Friendly Features
- Collateral: 137 assets (e.g., USDT) must first be staked in Binance’s "Principal Guaranteed" savings products.
Loan Terms:
- 218 borrowable assets with 78% initial LTV (loan-to-value).
- No expiration; positions remain open unless liquidated at 90% LTV.
- Unique Benefit: Collateral continues earning savings yield (e.g., WLD loans net ~22.9% APR after ETH yield deductions).
- Risk: EEA users cannot borrow against unregulated stablecoins like USDT.
👉 Compare Binance’s rates today
OKX Flexible Loan: Depositor Advantages
- Collateral: 149 assets staked without yield requirements.
Loan Terms:
- 127 borrowable assets with 70% initial LTV.
- Multi-collateral support (e.g., BTC+ORDI+BCH).
Interest Mechanism:
- Market-driven rates via user-set deposit bids (e.g., 1%–10% APR).
- "Auto-Currency Swap" triggers when platform borrows reach 100%.
- Risk: Liquidated funds go to platform reserves (no user recovery).
Bybit Collateral Loan: Simplicity Focused
- Collateral: 153 assets with straightforward staking.
Loan Terms:
- 157 borrowable assets at 80% LTV (95% liquidation threshold).
- Interest: Hourly-rate fluctuations.
FAQ: CEX Lending Explained
Q: Which platform is best for low-risk borrowing?
A: Bybit’s higher LTV (80%) and lower liquidation risk (95%) suit cautious users.
Q: How does OKX’s "Auto-Currency Swap" work?
A: When borrow demand hits 100%, large borrowers are prioritized for automatic repayment via collateral conversion.
Q: Can I earn yield on Binance collateral?
A: Yes, but only through "Principal Guaranteed" products (excludes Launchpool rewards for BNB).
Q: What happens if my loan is liquidated on OKX?
A: Funds move to OKX’s risk reserve—unlike Binance/Bybit, which return residual collateral.
👉 Start lending safely with OKX
Key Takeaways
- Binance: Ideal for borrowers wanting yield-earning collateral (higher complexity).
- OKX: Favors depositors with flexible terms but has unique liquidation risks.
- Bybit: Best for simplicity with higher LTV buffers.
Always monitor platform-specific rules and market conditions to avoid unexpected liquidations.