In this MyConstant Review, we will be looking into all of MyConstant's features and figuring out whether or not this is a good option for you to grow your cryptocurrency assets.
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MyConstant Review: Background
MyConstant is a P2P lending platform based in the US. It started out as a stablecoin project in 2018 but grew to an investment platform due to significant demand from the market. Since then, MyConstant has achieved important milestones namely over $170M volume, 200k users, and over $2M interest paid out. Also, thanks to the over-collateralization mechanism, MyConstant has not lost a single penny from users' funds.
Please note that CONST LLC is not a bank or deposit account, nor is it a regulated financial institution. MyConstant tokens are not financial instruments. No interest will be paid on any funds or other assets held in your MyConstant account and all assets directly held by MyConstant are not insured by MyConstant or, except as set forth below, any third party or any government agency.
MyConstant works with independent third-party financial institutions such as Prime Trust to provide cash management for the fiat deposits backing MyConstant tokens, ensuring that all MyConstant tokens in circulation are matched by an equal amount of fiat deposits. To achieve this, the fiat deposits backing MyConstant are held in one or more depository accounts at US banks or trust companies whose deposits may be insured.
MyConstant Review: Security
How MyConstant manages the risks of investing in crypto-backed loans
This is the risk someone you’ve lent to either can’t repay or runs off with your money.
How MyConstant manages it
All lending from 150% is backed by collateral. If borrowers default, collateral is sold to repay you.
A "flash crash" might affect MyConstant's ability to sell collateral at a price that returns your principal and earned profit.
How MyConstant manages it
All non-stablecoin backed lending is minimum over collateralized at 150-200% of the loan amount.
MyConstant only accepts cryptocurrency collateral that is liquid and backed by the best technology and leadership team.
Borrowers are notified three times before MyConstant sells collateral, giving them the option to repay or top up their collateral.
MyConstant encourages borrowers to use “auto top-up” which allows borrowers to deposit extra collateral just in case their collateral falls in value.
This is the risk of MyConstant holding your funds or digital assets, such as theft and loss risk.
How MyConstant manage it
Prime Trust, MyConstant's custodial partner, is an accredited US financial institution and a leading cryptocurrency and fiat custodian.
Prime Trust holds all uninvested fiat (USD) in multiple insured bank accounts with an indemnity limit of $130M.
Digital assets are either safely stored in a cold wallet with Prime Trust, an Ethereum smart contract, or a password-protected web wallet hosted on a dedicated server (to which only the MyConstant CEO and CFO have access).
Currently, MyConstant forwards funds and borrower collateral to Prime Trust, but eventually, you will transfer to Prime Trust directly, without MyConstant ever touching your funds or cryptocurrencies.
Every loan also comes with a buy-back guarantee from the loan originator. If borrowers default for 60 days or more, the loan originator will buy back the loan from you, repaying your principal and earned interest.
How MyConstant protects your account against cybercrime
Online security is a shared responsibility.
It involves you, MyConstant, and every other internet entity on the planet.
There’s no room for complacency. Cybercrime is estimated to cost $6 trillion in damages by 2021. The stakes, therefore, are phenomenally high.
MyConstant requires 2-Factor Authorization (2FA) via a 2FA app (Authy or Google Authenticator).
MyConstant requires password formats that are difficult to hack.
MyConstant hashes password data using SHA-256 so it’s impossible to decrypt.
MyConstant maintains multi-level security protocols on its servers.
MyConstant uses SSL connections only (the little padlock or HTTPS before a URL).
Nevertheless, these measures alone can’t protect your account against all risks. You are the first line of defence against cybercrime.
MyConstant Review: Investing
When you invest with MyConstant, you first send your funds (either fiat like USD or stablecoins) to MyConstant's custodial partner Prime Trust, an accredited US financial institution.
Prime Trust then converts your funds to a relevant stablecoin which MyConstant then lends on your behalf to collateralized borrowers, liquidity pools, and decentralized exchanges in return for interest.
When you’re ready to withdraw, Prime Trust converts your invested stablecoins back to the relevant currency of your withdrawal request. There are no charge or fees for fiat (USD etc) withdrawals. You’ll keep the interest you earn up to the moment you withdraw your funds.
You can invest either in fiat (USD) or crypto - whichever works best for you. What you should bear in mind is that MyConstant offers up to 15% APY in selected stablecoins (USDT and USDC), compounded each second.
The rates start at 12.5% but with membership benefits, this can climb up to 15%. And you can withdraw your USDT or USDC at any time, keeping the interest you’ve earned at that point.
So, for example, if you invested $1,000 and left it for a year - you’ll earn over $150 on that alone.
For fiat USD investment, you can choose MyConstant's instant access account or invest for a fixed term. The instant access account has a 24-hour term that’s automatically extended every 24 hours unless you choose to disable the product or withdraw your funds.
All account statements for MyConstant investment products are stated in USD equivalent terms at all times.
MyConstant's current rates for fiat USD investing are as follows:
30 days at 6% APR / 90 days at 6.5% APR / 180 days at 7% APR.
You also get a bank-beating 4% APY in your instant-access account. At a time of inflation, these interest rates can make all the difference.
MyConstant Review: MyConstant Guarantee
MyConstant is committed to protecting you from loss or theft of cash and cryptocurrency assets while in its custody or that of third parties.
As a result, MyConstant has set up the MyConstant Guarantee, a mixed-asset fund (cash and crypto) worth $10 million stored across bank accounts and cold wallets.
The MyConstant Guarantee, is designed to reimburse some or all losses incurred by you in the following scenarios:
- Theft or loss of your cryptocurrency while in MyConstant's custody or that of third parties, and
- Theft or loss of your USD or stablecoins in MyConstant's custody or that of third parties
Where MyConstant or the third-party is at fault only.
The MyConstant guarantee does not cover scenarios in which you have failed to take recommended precautions to safeguard your cash or cryptocurrency assets, nor does it cover the inherent risks associated with investing in crypto-backed lending.
Risks where the MyConstant Guarantee applies include (but are not limited to):
- Cyber risk. Should an attack on MyConstant servers result in loss or theft of cash or cryptocurrency assets, you’ll be reimbursed some or all of your lost funds.
- Loss of private keys. Should MyConstant or a third-party lose the private keys to your assets, you’ll be reimbursed some or all of your lost funds.
- Custodial risk. Should your cash or cryptocurrency be lost or stolen while in MyConstant's custody or that of a third party, you’ll be reimbursed some or all of your lost funds.
Risks where the MyConstant Guarantee does not apply (include but are not limited to):
- Default risk. Such as when borrowers don’t repay and the collateral mechanism fails (or if there is no collateral such as in Loan Originator investments).
- Market risk. Such as the risk of collateral devaluation resulting in a loss to you.
- Personal security risk. Such as identity theft, theft of 2FA devices, theft of login credentials, and so on where the mitigation of such risk is under your control.
While MyConstant endeavors to maintain the value of the MyConstant Guarantee at $10 million, the actual value might vary due to market conditions (such as cryptocurrency price changes).
The MyConstant Guarantee is a total limit to which MyConstant can reimburse qualifying losses. It’s not a per customer, per product, or per event limit, but a combined limit for all qualifying losses on the platform. This might affect whether your claim is paid fully, partially, or not at all.
Payments under the MyConstant Guarantee will temporarily diminish the fund until such time as MyConstant can replenish it. This also might affect whether your claim is paid partially, fully, or not all.
Please note the MyConstant Guarantee is not insurance and all decisions to reimburse you for qualifying losses are MyConstant's. Such decisions are non-negotiable and final. If you’re concerned about the aforementioned risks please consider whether MyConstant is the right platform for you. All investment involves risk and the MyConstant Guarantee will not cover them all.
MyConstant Review: Pricing and Fees
While MyConstant processes your deposits and withdrawals free of charge, transaction fees may be applied separately by your financial institution.
Keep in mind that USD is free, fees only apply for crypto.
If you'd like to check all the latest pricing and fees, please follow the link below.
MyConstant Review: Pros & Cons
- Multiple packages with flexible terms and rates
- Secured loans so the risk of losing your investments is relatively low
- Earn up to 15% APY on selected stablecoins
- No fees for investing or depositing
- Transparent platform
- $4,000 trial bonus for new members
- All loans backed by at least 150% of crypto collateral
- No futures or short-selling for US investors
- EUR and GBP holders must send USD or crypto for deposits
- Transfers take some time
- The company is relatively young
- A limited number of cryptocurrencies
MyConstant Review: Verdict
After our MyConstant review, we found this to be one of the most transparent, stable, and promising lending platforms in the market.
MyConstant has introduced many security measures to keep your assets as secure as possible. It offers multiple packages with flexible terms and rates, and there are no fees for investing or depositing.
When compared to other similar platforms, MyConstant is still missing a lot of features and a lot of cryptocurrencies, this is expected to change in the future as the company is still relatively new.
The app is ok, but at times it could be more intuitive, transfers are a bit lengthy.
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