Last Updated on August 5, 2023 by Diana Kelley
CULT DAO aims to break the chains of centralization and offer financial freedom to its users. The tradable and liquid token of CULT DAO, CULT, transacts with a tax on all transactions which contributes to the treasury for funding investments into decentralized technologies. In this article, learn about the unique features of CULT, including staking for dCULT and decentralized autonomous organization (DAO). Discover how CULT is funding projects promoting decentralization, and how taking out a CULT loan can help you gain profit by leveraging your assets. Get a step-by-step guide on how to get a CULT loan in just four simple steps with CoinRabbit.
What is CULT cryptocurrency?
CULT is the tradable and liquid token of CULT DAO, transacting CULT will contribute to the protocol by filling the DAO treasury slowly, to fund investments into decentralised technologies. This is achieved due to a 0.4% tax on all CULT transactions.
CULT, once staked into the Cult DAO, becomes dCULT. dCULT is just the “proof of stake token” for CULT. When you stake your CULT into the DAO, you are given dCULT, this can be swapped back at any time into the quantity of CULT you staked initially, plus any compensations that were given to the DAO in the period you owned dCULT.
What Is Dao?
A DAO is a Decentralised Autonomous Organization. A DAO in its purest form is what Cult Dao has created, it will function forevermore with no human interference beyond what has been coded for it to be influenced by, which is votes from its holders. Nobody can dismantle the code and nobody can stop it from collecting funds and sending them to those furthering our cause, as long as the token is traded & as long as people are passing proposals, CULT will live on.
What Makes CULT Unique?
CULT’s vision is to fund projects and ideas that have a positive impact on more decentralization in the world. “We fund those who are willing to break the chains and have an idea that can change our world.”
The top 50 CULT stakers are The Guardians.
These Guardians can submit proposals to the DAO, but they cannot influence the vote. The votes can be made by all CULT stakers who are not Guardians. Votes pass based on token share Yes vs No.
These proposals put forward should be requests for investment from protocols
which match all or most of the below criteria;
-Fight Against Centralisation
-Further the Cause of Decentralisation
-Directly Benefit a Noble Cause
The DAO can then vote on whether they believe the investment should be granted.
There is also a burning mechanism in place that works as an incentive.
For every 15.5 Eth of CULT raised, 2.5 Eth is burned, and 13 Eth goes to the investee protocol or cause.
The investee token is redistributed as per the proposal, with the full distribution swapped to the CULT token at the agreed rates of dispursement. E.g. once a day, week or month.
50% of that CULT is immediately sent to a burn wallet, with the other 50% redistributed proportionally to all stakers of CULT.
What are the benefits of taking out a CULT loan?
With crypto loans, you can access funds without selling, increase liquidity, maximize capital utilization, and diversify your portfolio more effectively. In addition, crypto loans tend to have lower interest rates than traditional loans, so borrowers are able to get funds for much less. Finally, these loans provide additional peace of mind since crypto collateral is stored securely in a cold storage wallet.
Here are some cases where you can use CULT as a collateral and get profit:
- Profit from volatility – CoinRabbit loans remain fixed no matter the exchange rate of the collateral currency. An example will help to explain this concept. Suppose you received a loan with 90% Loan-to-value-ratio against 2,000,000,000 CULT when it was valued at $0.0000048 (approx. $9,600). You were then provided with 90% of your collateral; in this case $8,640. To receive your CULT collateral back, you must repay that exact amount – regardless if CULT rises to $0.0000080 or higher. Technically speaking, when repaying the loan at that point, you’d be getting back a total of $16,000 instead of the original $9,600! Crypto loans allow users to leverage their assets and potentially gain profit simultaneously – making them incredibly advantageous.
- Make a huge purchase and continue holding – The crypto loan allows you to enjoy the value of the invested fiat money while inflation permanently decreases it. Today the same amount values more than tomorrow. Therefore, when you take out a crypto loan against CULT, you keep all your CULT assets but gain extra funds to spend today, as we all know that tomorrow your wishes will be more expensive. 😉
- Tax optimization – Some countries require you to pay up to 40% on your crypto investment profits. There is no direct profit in a loan transaction. So you can take a loan and maximize your tax efficiency without worrying about taxes.
- Technique for managing risks – Rather than holding CULT tokens and risking the unpredictable fluctuations of the crypto markets, crypto investors now have the opportunity to utilize their investments as collateral for a CULT loan. They can access funds while their assets remain secure, allowing them to manage their risks. In this way, they can benefit from the lower interest rates of crypto loans while protecting themselves from potential losses from market volatility at the same time.
Is there a way to work with CULT volatility to avoid liquidation?
CULT crypto volatility can result in liquidation. When you use your CULT to take a loan, it is important to monitor the status of your loan. CoinRabbit offers an instant alert system, which uses SMS and e-mail to inform users when there is a potential liquidation.
You can always add more collateral to adjust the Liquidation price of your loan. Loan collateral at CoinRabbit isn’t frozen; therefore, liquidation prices are adjusted immediately by adding more collateral or repaying your loan.
Aside from that, you can decrease the LTV at any time while the loan is open by adding more collateral. For example, CoinRabbit’s minimum loan LTV is 50%. CoinRabbit allows you to increase collateral immediately after opening a loan, so the LTV will decrease at a rate that suits you.
How to get a loan in 4 steps
The application process for a CULT crypto loan has been significantly simplified thanks to crypto loan platforms like CoinRabbit.
- Choose CULT crypto as your preferred collateral on the homepage, under the Loan calculator section.
- By entering the amount of CULT crypto you want to deposit as collateral, the Calculator will show you the Loan Amounts you will receive, and click “Get Loan.”
- We will ask you to confirm the details, enter your stablecoin address, and verify your email address after clicking “Get Loan”
- Next, send CULT to the displayed address. After we receive your collateral, the loan will be sent to you immediately.
Conclusion
CULT crypto loans with CoinRabbit – is a great tool for crypto investors and holders: you can use a crypto loan to optimize your taxes, make a huge purchase, reinvest in new cryptocurrencies and many more while continuing holding your digital assets.
It’s important to remember that all operations with crypto are highly risky. When you get a loan with any crypto lending platform – don’t forget to check the status of your crypto loan periodically and add collateral if it’s needed to avoid liquidation of the loan.
