Autoinvest: an easy way to diversify your loan portfolio!

AUTOINVEST

Investing is a time-consuming process and we’ve been working hard to automate it for you. Loanbase has finally delivered Autoinvest: an easy way to diversify your loan portfolio! It takes seconds to setup the investment plan, and you’ll be able to let your bitcoins work for you instead of having to work for your bitcoins. It’s all done in 3 easy steps:

  1. Pick an investment plan: Safe, Smart or Risky.
  2. Select your budget and whether to re-invest the funds.
  3. Start your Autoinvest plan!

Once you activate your plan, our system will automatically invest your funds and build a highly diversified portfolio. In order to achieve a positive yield, the system will utilize our risk-based pricing.

START INVESTING

RISK-BASED PRICING

One of the most notable changes to our platform comes with the enforcement of risk-based pricing. We’re no longer going to have the dutch auction style lending. The main reason for the departure has been that lenders have frequently underestimated the risk of each loan, despite the default rates being shown at our statistics page. The old system had a negative impact on the lenders who charged the suggested interest rate: they were getting outbid and pushed out of many loan opportunities, which made it extremely difficult to stay profitable. Last month we released our new credit scoring and suggested interest rates. The credit scoring has been very reliable and the data collected has allowed us to lower the interest rates, while still maintaining a comfortable yield for the lenders.

VIEW PRICING

DIVERSIFICATION

However, risk-based pricing alone is not sufficient to keep lenders profitable. A critical component is proper diversification! Autoinvest automatically diversifies your portfolio by equally dividing your budget between multiple loans. The main benefit of the diversification is that any losses will be offset by the gains from the repaid loans. You can monitor the details of your portfolio and see which loans were funded by the particular Autoinvest plan. This sort of granularity will provide our lenders with more transparency.

CREATE PORTFOLIO

OPEN LISTINGS

However, risk-based pricing alone is not sufficient to keep lenders profitable. A critical component is proper diversification! Autoinvest automatically diversifies your portfolio by equally dividing your budget between multiple loans. The main benefit of the diversification is that any losses will be offset by the gains from the repaid loans. You can monitor the details of your portfolio and see which loans were funded by the particular Autoinvest plan. This sort of granularity will provide our lenders with more transparency.

BROWSE NOW

RBP

BORROWERS

What does this all mean for our borrowers? First and foremost, the borrowers will know exactly what kind of interest rate they qualify for, without having to wait for the loan to get funded or even start the loan. The interest rate is displayed directly in the loan listing form. In addition, they will be able to get the loan funded in minutes, rather than days! Some borrowers have expressed concern about possibly high interest rates, but that should largely be mitigated by the lowered interest rates, which are being introduced along with Autoinvest.