Constant (also known as “MyConstant”) is a one of the fastest growing P2P investment platforms operating in the United States. Up to September 2020, the platform has matched $42M in loans, and is growing ~25% every quarter. MyConstant offers a product to suite all investing styles. Firstly you have the Flex account, which is the basic account that accrues 4% interest (compounding daily). For this you just need to have your money in the platform. There is the Crypto-backed product which allows you to earn up to 7% on your money in a cryptocurrency backed loan. The loan is overcollateralised by the borrower, so you get paid even if the borrower defaults. There is the Crypto Lend product which allows you to earn 8% interest on Binance Coin (BNB), Bitcoin (BTC), and Ethereum (ETH). Additionally there is the Loan Originator Product, but this has been delayed to to the Covid pandemic. The Loan Originator would allow investors to invest with specific loan originators pre-selected from the platform. This is most similar to other P2P investments.
The platform as a whole offers many benefits including minimal to no-fees, withdrawals are possible at any stage, 24/7 customer service and a free library of resources to help understand the platform, as well as understand your own financial goals. In 2019 investors made an average 8.5% APR and the platform achieved a Trustpilot score of 4.6/5.
How Does MyConstant Work?
MyConstant connects investors with borrowers and ensures that overcollateralisation and buyback guarantees protect investors funds. More specifically, an investor will deposit an amount of money that they want to invest. A borrower will then be matched to that investor. The borrower is required to put up 100%-200% of the loan amount in cryptocurrency collateral to secure the loan. Are you interested in understanding more about how my constant works? If so, check out the video below.
The Growth of the MyConstant Platform
In over a year, Constant has grown to compete with the top P2P investment platforms in the United States. Constant has matched $25 million in loans and is growing at 25% each quarter.
My Constant Products and Benefits
|Flex (where you’ll earn your 20%)||Crypto-backed||Crypto Lend||Loan Originator (coming soon)|
|Suitable for||Those looking to store money similar to a bank account, and those who need quick access to their funds.||Those who want to earn a little more on their money. This requires a fixed term Experienced investors who can commit to a fixed term for a better rate||Those who hold cryptocurrency, and want to earn interest on their holdings.||Those who like higher returns, but also with higher risk|
|Holding Period||None||30 days – 190 days||None||6-15 months|
|Protection||Collateral put up in a third-party lending pool||Collateral of cryptocurrency put up by Constant borrowers||Constant will indemnify you in certain cases||Loan originator’s buy-back guarantee|
|Interest rate||4% APY||6-7% APR||6% APY||9.5-12% APR|
|Interest paid||Every second||At the end of the term||Every second||Monthly or at the end of the term|
|Withdrawal||Anytime||At the end of the term||Anytime||At the end of the term|
|Minimum investment||10 USD||50 USD||0.001 BTC||50 USD|
|Maximum investment||No||No||5 BTC worth of each supported token||No|
|End term early?||N/A||Yes, and you earn 2% APR on elapsed time||N/A||Yes|
What is the Flex Account?
Flex is Constant’s anytime-withdrawal investment account. The account is the main holding account of your funds, and a 4% interest rate is applied to this money.
With Flex, you get 50x better interest than a savings account without locking in your money.
Flex works by investing your money in collateralized lending pools from which borrowers can get loans in return for interest. As such, it’s not a savings account, and is not FDIC-insured. However, it offers the convenience of a savings account with anytime withdrawals and a much better rate, so could be an ideal way to diversify your investments.
- 4% APY, compounded and paid every second
- No fees
- Anytime withdrawals
- Minimum investment just $10, so its easy to test out the platform without putting down larger amounts.
- No maximum investment limit.
- Not FDIC-insured
How Does Flex Work?
Once you have opened an account on MyConstant, you will automatically have a Flex account. You can deposit money into the account by going to deposits and finding the details there. Once money has been transferred to the account, you will have already started to earn the 4% interest. This interest is compounded daily, and is easily seen on the dashboard.
MyConstant supports Zelle if under $2,000, ACH transfers for linked US accounts up to $5,000, and wire transfers for other unlimited amounts. Deposits can take 1-5 days depending on how they are sent to the platform.
Additionally, if you have use this link, then you will have $2,000 already sitting in the account earning a 4% interest.
Note: The $2,000 is only applied if a US citizen, and if passed KYC checks. After a month, the 2,000 will be taken back, but you keep the interest!
How is the Flex Account Protected?
The Flex product is not insured by the Federal Deposit Insurance Corporation, but does form part of a lending pool that used Compound Finance technology to earn interest. Lending is secured by borrower collateral, protecting your funds.
If you want your funds to be insured secure, you will have to disable the Flex account.
Can I Disable Flex?
Once you open an account, you are automatically provided with a flex account. However, you may prefer not to have your money in this account.
It is easy to disable the Flex account. All you have to do is head to the “Settings” page, and uncheck the “Earn 4% APY through Flex” checkbox.
If you disable Flex, your balance is escrowed through Prime Trust, an accredited US financial institution. The money there will be stored across multiple insured bank accounts which provides coverage of $130,000,000, but no interest will be earned.
What is the Crypto-backed Product?
The Cryptocurrency-backed product offered by MyConstant is a P2P lending product that pays up to 7.5% APR on fixed terms of 1, 3, or 6 months.
When you invest in Crypto-backed, your money funds a lending pool from which borrowers can get loans in return for interest. Borrowers must put up 100-200% of the loan amount in cryptocurrency as collateral to secure the loan, which is sold to repay you if they default or their collateral value falls to a threshold.
Given all lending is backed by approved cryptocurrencies, the risk of loss due to borrower default is much lower than unsecured P2P lending platforms. Constant carefully selects which cryptocurrencies it accepts as collateral to ensure they can be sold at a moment’s notice. There has been no investor losses since launch in early 2019.
- Up to 7.5% APR
- Flexible terms 1-6 months
- No fees
- Minimum investment $50
- No maximum investment
How is the Crypto-backed Investment Protected?
All of the borrowers must put up 150% of the loan amount as a cryptocurrency collateral. If the loan is not repaid, the collateral is sold, and the funds are returned to the investor. If stablecoins are used, then only 100% of collateralisation is required.
Additionally, there is a liquidation threshold to insure against a fall in the value of the collateral. This means that if the collateral drops to 110% of the principal and interest, its sold, and repaid to the investor.
Only specific cryptocurrencies are selected to be used as collateral.
Can I end my Crypto-Backed Investment Early?
Yes, MyConstant offers a secondary market that you can sell your crypto-backed investment on.
Once sold, the principal will be returned and a 2% interest on the elapsed term time.
What is the Crypto Lend Product?
Crypto Lend offers investors a 8% interest rate on their Bitcoin (BTC), Etherum (ETH), and Binance Coins (BNB). Your interest is paid and compounded every second in the same cryptocurrency you use to invest, and you can withdraw anytime for free. Constant has also capped investments at $3M to ensure it can cover investor losses in cases where it or its partners are at fault. The platform is simple. Once you have bought your Bitcoin, all you have to do is send it to MyConstant, and then your interest will start compiling.
- 8% APY return on on Bitcoin, Ethereum, and Binance Coin.
- Interest compounded and paid every second.
- Unlimited free withdrawals.
- No minimum investment.
- Available worldwide (non-US currencies converted to USD).
Unfortunately, due to changing market conditions, the interest rate on BTC, BNB, and ETH through the Lend Crypto product will reduce from April 1st 2021. The new interest rates are as follows:
- When receiving interest in BTC, BNB, or ETH: 6% APY
- When receiving interest in PRV: 9% APR
What is the Loan Originator Product?
New loans are currently suspended from Loan Originator due to the COVID pandemic. It hopeful that the suspension will be lifted by the end of 2020.
A Loan Originator investment is a Claim Right against a loan issued by our loan originator partner. Instead of buying the loan with all the rights and ownership of collateral (if any), you’re buying a right to receive payments from an existing loan.
- Pays up to 11% APR.
- Flexible terms of 6-15 months.
- All loans include the loan originator’s buy-back guarantee.
- Access to multiple markets, including Europe and Russia.
- Periodic repayments of principal, interest, or both.
- Free withdrawals in fiat or stablecoins.
- Minimum investment just $50.
- Available worldwide (non-US currencies converted to USD).
Borrowing through MyConstant
As well as investing through the various products, you are also able to borrow either cash, or cryptocurrency coins in just minutes of an application. There are no month long waiting periods for approval, credit scoring or background checks. You just need to have a cryptocurrency as collateral.
- Withdraw in Cryptocurrency, or USD
- Borrow any amount for 1, 3 or 6 months
- Borrow against a whole portfolio. or a single cryptocurrency
- No credit scoring or background checks
- Quick acceptance
- If the value of the collateral increases above the 150% threshold, you can withdraw any excess
- If the cryptocurrency collateral suddenly drops, you may need to add more, or it will be automatically sold.
How do I borrow through MyConstant?
- Choose a term of 1 month, 3 months or 6 months.
- Decide on whether you will recieve your loan in USD or in cryptocurrency. If you choose cryptocurrency, MyConstant will find the best price from multiple exchanges. There will be no trading fee.
- Deposit your collateral. Send collateral to secure the loan. A portfolio of cryptocurrencies or individual cryptocurrencies can be used. The collateral is securely stored, and returned once you pay back the loan.
- Withdraw your loan.
- Repay at any time in either fiat (i.e. USD) or cryptocurrencies. Once the loan is repaid, you can withdraw the collateral, or use it for another loan.
How is the Collateral Stored?
The cryptocurrency used as collateral for your borrowed funds is either held in Prime Trust custody, an Ethereum smart contract, or a password-protected wallet hosted on a dedicated server.
MyConstant Additional Platform Benefits
- No fees for investing, depositing transferring, and withdrawing
- Wide range of investment articles and resources
- iOS and Android application
- Worldwide availability – All Fiat currencies are accepted (and converted to USD when they enter the platform.
- Anytime customer support
- Constant is rated 4.6 stars out of 5 on Trustpilot (350+ reviews).
- Constant uses Prime Trust, an accredited US financial institution, for almost all cash management. This means Constant rarely takes ownership of your funds, reducing custodial risk to you.
- Constant has featured in many prominent finance and tech publications, including Forbes, Inc Magazine, Entrepreneur, and Zero Hedge.
Constant offers a Secondary Market, allowing investors to buy and sell existing investments. Investments bought will receive interest on the full term (regardless of time left). More information about the secondary market can be found here.
Constant offers a range of badges that can be gained as a reward for using the platform, or promoting the platform to others. Each badge recognizes an achievement ranging from signing up, to making your first investment, to being active for a set time. Badges have different difficulty levels. For example, if you make your first deposit, you can earn $1. If you achieve diamond membership, you can earn $50. If you collect all the badges, you would have received a total of $500 in bonuses.
Most of the badges are awarded automatically, but some require proof (i.e. a trustpilot review). You can find a full list of the badges here.
For every dollar you invest or borrow through Constant, you will earn 1 membership point. As soon as you have gained enough points, you will be assigned into a membership group, that provides various rewards. The membership offers include:
Gold (25,000 points) – As a gold member you receive $50 credit(first time) in your account, $15 for every friend you refer, and 15% of all earned intrest from the Flex account of your invited friends during their first year.
Platinum (50,000 points) – As A PLATINUM member you receive $50 credit(first time) in your account, $17.5 for every friend you refer, and 17.5% of all earned intrest from the Flex account of your invited friends during their first year.
Diamond (100,000 points) – As A DIAMOND member you receive $50 credit(first time) in your account, $20 for every friend you refer, and 20% of all earned interest from the Flex account of your invited friends during their first year. Additionally, with diamond you move to the top of a matching queue for investments, and you also receive a 1% STAR token to use for either bonus interest, or discounted interest.
Membership points will last for 180 days after they have been earnt. If you allow your points to expire, you will lose your membership and benefits. To stop your points expiring, top them up every 180 days.
How to Withdraw Funds
There are many ways to withdraw funds from Constant, including withdrawals in fiat (i.e. USD, CNY and others), or crypto stablecoins (USDT). Currently you can choose to withdraw with Zelle, Paypal, or direct into your bank account. Note: Zelle and Paypal have daily limits.
An email will be provided once the funds have been sent from Constant, and received by the bank. This usually occurs within 2 business days,.
MyConstant Withdrawal Fees
The majority of withdrawals on the the platform are free of charge, however there is a $1 charge when withdrawing stablecoins. Additionally, there are also withdrawal limits for some forms of payment.
For a full overview for specific frees and withdrawal limits on MyConstant, have a look at their , have a look at the Pricing and Service times page on the platform.
What makes Constant different from other P2P lending platforms?
Every loan funded on Constant is backed by collateral of up to 200% of the loan amount. This collateral is sold if borrowers default on payments, or if the value falls below a certain level. This crypto collateral protects the investors (as they get the proceeds of the collateral), and protects the borrowers (as they keep the loan).
Unlike other platforms, Constant pools investor funds into a lending pool or reserve. This means you match instantly, whether you’re a borrower or an investor. We don’t need credit checks and we offer three fixed-term investments to give you flexibility.
If you choose to invite your friends as well, you will receive an additional 10% on their earned flex interest during their first year. You are able to invite as many friends as you like, with a maximum earning potential up to $1 million.
Constant Special offers
Free $2,000 trial bonus for new US customers
If you’re a US citizen who signs up and passes KYC, you’ll receive a 30-day trial bonus of $2,000 to invest in Flex at 4% APY. After 30 days, Constant will reclaim the $2,000, but you keep the interest. This gives you the opportunity to try the platform before committing any of your own money.
Refer friends for a $20 bonus (US only) plus 20% of their Flex interest
Constant also offers a generous referral rewards program. For any US citizen who signs up using your unique referral link, passes KYC, and deposits at least $10, you will earn a $20 bonus and 20% of their Flex interest in their first year of investing. For example, if your friend earns $100 in their first year, you get $20 without lifting a finger.
Where Can I Find More Information on MyConstant?
Constant has a vast array of articles in their blog, which includes many categories such as getting started, investing, borrowing, trading, security and news. Additionally, trustpilot reviews provide a great insight into what the company is doing well, and what problems borrowers and investors face.