With many savings accounts paying near zero percent in interest, you’re basically forced to put your money into the stock market if you want any kind of return. Of course, there's a lot of risk in the stock market. Is there a better way to earn a higher interest rate without the volatility?
MyConstant says, yes, there is. MyConstant pays 4-7% on deposits of stablecoins. A stablecoin is pegged to a fiat currency, such as the U.S. dollar. This means it doesn't have the volatility of Bitcoin, for example.
So what is the catch? Stablecoins are risky since they're not regulated and have no governmental protections. For those willing to take on the risk, a decent return awaits. Let’s see what MyConstant has to offer.
- Earn up to 7% APR when you invest USD
- Loans start at 6%
- Loans require up to 200% collateral in crypto
Up to 7%
Starting at 6%
$4,000 free investing trial for 15 days
What Is MyConstant?
MyConstant is a crypto lending platform. It was formed in January 2019 and is based in Riverside, CA. MyConstant doesn’t list its CEO or any other team members. It’s also unclear if the company has raised any money.
MyConstant is named after its proprietary stablecoin — CONST. MyConstant started as a stablecoin project. In mid-2019, it launched a P2P lending platform.
What Does It Offer?
MyConstant customers deposit fiat or crypto which is then lent out. In exchange, customers earn interest on their funds. Deposited funds can earn up to 7% while borrowers can get rates as low as 6%.
There are no credit checks, as long as you have the crypto collateral required for your loan. Investors can lend in USD or crypto. Investors are protected from borrower defaults since borrowers must put up to 200% in collateral for their loans.
MyConstant works by having investors deposit money into their MyConstant account and matching them with borrowers. Funds are transferred through MyConstant’s custodial partner, Prime Trust. MyConstant also allows shorting certain cryptocurrencies and trading cryptocurrency futures.
Low Loan Rates
Loan rates can be as low as 6%. Collateral can be combined by using multiple coin types. Over 71 coins can be used for collateral. Loans can be made in USD or crypto. The loan-to-value (LTV) ratio is up to 66%. Loan terms are 1, 3, or 6 months.
High Interest Paid On Deposits
Depositors can earn 4% APY on stablecoins as well as BTC, ETH, and BNB when you earn interest in the same currency as the coin on deposit. This is notable far fewer coins than can be used as collateral for loans. However, MyConstant says that interest is paid out and compounded on these coins every second.
The maximum rate increases to 7% APR if you receive your interest payments as PRV which is the native privacy token of MyConstant's primary exchange partner, Incognito. The longer you leave your funds in the crypto savings account, the more you’ll earn. Deposits held for 180 days in fixed-term loans earn 9%. The minimum investments is just $10.
Funds can be transferred via ACH or wire. Unless you invest in a fixed loan term, you can withdraw funds at any time.
Borrower Default Protection
Investors are protected from borrower defaults through the collateral that borrowers must put up. If a borrower defaults, their collateral can be sold. This is basically a secured loan. Collateral can go up to 200% of the loan.
When the value of the loan falls to 110% of its principal, the collateral is sold. While this might all sound great, keep in mind that MyConstant still can’t guarantee the return of your principal and profit.
Are There Any Fees?
Yes, withdrawing crypto will incur a fee. For example, USDC costs $10 per withdrawal. There are no fees for withdrawing fiat currency.
It's important to point out that borrowers are charged a 3.5% matching fee which is on top of the interest that they will pay. And, unfortunately, MyConstant also charges prepayment penalties.
The prepayment penalty is 50% interest for the remaining term if you pay back your loan before 75% of the term has elapsed and it increases to 100% of the remaining interest after 75% of the term has elapsed.
How Do I Contact MyConstant?
There are several ways to contact MyConstant. Live chat is available on its website. Other methods include:
Mon - Fri 9am - 5pm
Mon-Thurs 6pm - 3am PST
21800 Opportunity Way, Riverside, CA 92508
Trustpilot — 4.5 out of 5 starts from 951 reviews.
Better Business Bureau — Not accredited. Grade F with four complaints. Most complaints are regarding long wait times to withdraw funds.
How Does MyConstant Compare?
Like gas stations, most crypto lending platforms tend to offer nearly identical features. None of these platforms have FDIC or SIPC protections and they are all risky. However, there are some minor variations in interest rates and coins offered. Check out this quick comparison here:
Up to 9%
Up to 12%
Up to 9.3%
Starting at 6%
Starting at 6.9%
Starting at 4.5%
How Do I Open An Account?
You can create an account at the MyConstant website. The process starts with a name and email. If you're depositing USD fiat, you’ll have to add more information for KYC (Know Your Customer) ID verification.
This will include your address, phone number, date of birth, social security, and a photo of you holding your ID. Registering should take less than 5 minutes, however KYC verification can take a few days.
MyConstant is currently offering new members a $4,000, 15-day trial of the platform so that they ca experience how fast compound interest on the platform can add up. After the 15 days are up, MyConstant takes back the $4,000 bonus, but you get to keep the interest earned.
Is It Safe And Secure?
Since MyConstant is not regulated and is not a deposit account. If MyConstant were to be hacked and your funds stolen, you'll have to deal directly with their team to get your money back.
It does use Prime Trust, however, which is a U.S. financial institution to store uninvested funds and crypto. Prime Trust uses a syndication of banks (each capable of independently providing $250,000 in direct FDIC coverage) to offer up to $130 million in FDIC protection.
While this is seemingly great news, it appears that this benefit only applies to deposits that are escrowed at Prime Trust and don't earn interest. According to this FAQ page, this FDIC insurance protection does not extend to MyConstant's interest-earning accounts.
Is It Worth It?
Of course, anyone who has an aversion to high risk will probably not be interested in a crypto lending platform. But if you trade crypto, you likely already know how a crypto lending platform like MyConstant works. And if you want to try crypto lending or saving, MyConstant can be a good place to start. It offers 4% APY to 7% APR on stablecoins with instant access to your deposits.
However, prospective crypto-backed loan borrowers will probably want to look elsewhere. While MyConstant's rates are about in line with their competitors, their matching fees and prepayment penalties aren't the most borrower-friendly.
It's also important to mention that MyConstant only pays interest on three non-stablecoin cryptocurrencies. So if you have a wide variety of crypto assets that you'd like to earn interest on, you may want to look for a platform that supports more coins. Compare crypto savings accounts here >>>
Crypto lending and borrowing platform
Interest Rate On Deposits
Up to 7% APR
Interest Rate On Loans
Starting at 6%
Loan Matching Fee
Late Payment Fee
10% of total interest due
Can connect with any bank that uses Plaid (about 11,000 U.S. banks)
5 to 10 business days
Yes, up to $130 million through Prime Trust's network of banks. Insurance is only provided on non-interest-bearing accounts.
iOS and Android
Customer Service Phone Number
Customer Service Hours
Mon - Fri 9 AM - 5 PM (PST)
Customer Service Email
$4,000 free investing trial for 15 days
Commissions and Fees
Ease of Use
Safety and Security
MyConstant is an online crypto lending and borrowing platform that offers competitive interest rates for both its investors and borrowers.
- Low loan APR
- High APR on savings
- Investors are protected by up to 200% collateral on loans
- Only pays interest on a few coins
- Penalties for repaying loans early
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.