The Crypto-Backed Credit Line
A Flexible Tool to Manage Fiat Cash Requirements
The Crypto-Backed Credit Line (CBCL) provides a valuable and flexible tool for managing fiat cash requirements while only being exposed to interest on the amount of fiat used. The CBCL works in conjunction with the MELD debit card where users can spend with their MELD Card both at point-of-sale and online. The CBCL works similarly to a fiat loan where cryptocurrency is collateralized in a smart contract and 50% of the collateral value can be used as a line of credit. Margin calls and liquidation events work the same in the line of credit product as they do in the MELD Loan.