YouHodler recently praised for their 100% customer satisfaction rating, just announced a new feature that aims to improve the control its users have during market volatility. The FinTech platform states this feature lets users extend the price down limit on their opened loans. This, in turn, protects them from any sudden market volatility by allowing them to hold on to their collateral without having to sell.
What is price down limit (PDL) and how does PDL Extend work?
In the event of crypto market volatility, where the price of one’s collateral rapidly falls, YouHodler reserves the right to sell said collateral if it surpassed a certain level to prevent further losses. This level is called the price down limit (PDL).
Previously the price down limit for all loans was a set amount (a percentage from the initial coin price). Users were notified in advance in the event of the collateral price dropping more than ⅔ of the price down limit.
However, this new feature lets users extend their PDL on an open loan to avoid this scenario and keep their crypto. Here’s how it works:
- Users will now see an “Extend PDL” button on their open loan found in the “My Loans” tab of their account
- Clicking the button will let users add additional crypto to the open loan.
- Adding additional collateral will extend the PDL and secure the loan in the event of a negative price drop.
How to protect yourself from volatility
On July 29, 2019, the price of Bitcoin (BTC) quickly dropped to $9,120. After that, it jumped up over 3.5% and more, proving its volatile behavior is still present. In the case BTC continues to drop past the PDL limit of an opened loan, users now have the chance to extend their PDL, keep their loan open, keep their crypto and keep HODLing.
Later, when the market is bullish, the user will profit from their collateral rising in value. YouHodler already offers some of the most competitive PDL levels in the industry but with the addition of this PDL extension feature, users now have an additional layer of control over their loans and security against market volatility.
Disclaimer: The “Extend PDL” feature and “Increase LTV” feature cannot be used at the same time on the same loan.
PDL feature follows a month of new additions for YouHodler
This newly-released PDL extension feature follows a busy month for YouHodler. July showed the FinTech platform release its brand new mobile app to the public, an automated “chain of loans” feature called Turbo Loans and increased loan flexibility with the ability to close and reopen loans whenever the user chooses.
YouHodler is a FinTech platform focused on crypto-backed lending with fiat (USD and EUR) and stablecoin loans, crypto/fiat and crypto/crypto conversions. YouHodler supports BTC, BCH, ETH, LTC, XLM, XRP, DASH, REP and other popular cryptocurrencies and tokens.