Constant Review: Solid Products and Partnerships Position Constant Well
U.S.-registered Constant offers customizable crypto finance options with outside-the-box thinking.
Constant Interest Account Review
Terms: Flexible, 1 month, 2 month, 3 month, 6 month
Pros & Cons
- BitGo insures loan collateral for $100 million.
- Constant is U.S. registered company and is very transparent.
- Interest account referral program is top-notch.
- No insurance on interest accounts.
- Low yearly return for interest account savers.
- Loan program offers limited customization.
Constant separates its rates into three bundles. You can either invest in a "Flex" account, a "Custom" account, or a "Crypto Staking" account. Constant's Crypto Staking feature, a simple way to share in the profits from a masternode pool, has not been entirely fleshed out yet and will not be the subject of this review. Instead we will look at the Flex account which provides 4% return and any-time withdrawals, and the Custom account with offers a floating rate for a fixed time period.
In the Flex account, all assets provide the same return and your currency is transferred into a larger pool with other investors. Flex compounds your interest every second, a capability powered by smart-contracts through the fintech company Compound Finance. Since your money is sent to a pool of other investors' money, your money is safe to withdraw at any time.
Constant's Custom account is unique. What the Custom account allows a user to do is set their own interest rate and length of term, whatever you want, and if someone out there on the other end of Constant's business is willing to take out a loan with that interest rate, then you will be matched with that person. If you choose an interest rate that is higher than the market rate (about 8% at the moment), then it may take longer to find a match. If you choose the market rate, the match happens almost instantly.
Regardless of account type, Constant only supports stablecoins and fiats as of now. Constant supports the well-known stablecoins USDC and USDT, as well as some lesser known coins, pUSDT and DAI.
Fiats supported include USD, Vietnam Dong and HongKong Dollar.
Service Fees and Restrictions
There are no fees associated with the Constant interest account.
The minimum balance is approximately $10.
What Constant's Interest Account Does Well
There are many options for types of accounts, albeit not too much asset support. You can get competitive rates for your fiat and stablecoins if you chose to lock up your assets for a set amount of time (30 days to nine month). You can even choose your own interest rate and let the free market do its thing. If time is not of the essence, you have the ability to set a marginally higher rate than what the market is currently at. All of these levels of customization are helpful for beginning investors looking to explore their comfort zone.
Constant has a lucrative referral program which allows you to earn up to $1 million USD. You can invite as many friends as you'd like and will earn 10% of their earned interest in their Flex account. Interestingly enough, if a friend you refer goes off and refers someone else, your friend earns more interest which in turn boosts your return as well.
Why You Might Want To Choose Another Service
If you do not agree to lock up your assets, you are looking at a measly 4% return on fiat and stablecoins. This is less than half (sometimes even a third) of what you can find elsewhere.
Constant does not provide support for too many well-known assets. Supporting USD is big, but most other companies in this space support USD. Their collection of stablecoins is sparse, fiat even more so which does not bode well for a beginner investor.
Although common in this budding fintech space, Constant does not offer traditional insurance on its interest account services. When your assets are sitting idle, they are insured by Prime Trust for $140M (or at least the fiat which backs CONST is insured). As soon as they enter into smart contracts through Compound Finance, they are uninsured, protected only by the collateral posted by borrowers. Lack of insurance means not only do you have to trust Constant, but you also have to trust Compound Finance to handle your money properly.
To Wrap It Up
Constant's audience remains unclear. They offer low rates and no insurance to scare away the hobbyists while offering few assets for the veterans. It's clear Constant is focused primarily on the US market but then they also offer Vietnam and HongKong fiats.
Constant will make you lock up assets to achieve higher rates. Less flexibility narrows down their audience even more. All in all, Constant offers a polished product for a very specific investor.
Constant Loan Review
Terms: 1 month, 3 months, 6 months
- Interest rate: The market rate is set at 7% but the rate can be set to whatever you wish.
- Monthly payment: There is no monthly payment on Constant loans, the interest and principal will be paid once at the end of the term.
- Repayment period The market rate is set at 30 days but can be set as high as nine months.
- Service fee 1% of the loan.
- LTV rates Constant sets a fixed LTV rate at 66%.
Constant has a low liquidation risk compared to other companies. Constant will sell your collateral if your LTV rate rises to 90% warning you in 5% increments starting at 75% LTV. You can set up an auto-top-off feature will automatically keep your collateral below the sell-off point by adding more collateral, but Constant warns that even this might not protect you in the event of a "flash crash."
If you choose to set up a loan using the market rates (7% interest at 30-day repayment period), you can get approved for a loan almost instantly (one block confirmation). After you've been approved, loans typically take 24 hours to appear in your account. Constant does not guarantee instant approval on loans if you decide to adjust the parameters of the loan.
You can use many assets to post as collateral. On top of BTC, ETH, BNB and XRP, Constant also supports many ERC20 tokens as well as dozens of other, lesser-known assets.
Loans can be paid out in USD, Vietnam Dong, USDT, USDC, Dai and pUSDT.
What Constant's Loans Do Well
Differentiation from the Competition
It's becoming more common, but a great feature of Constant's is the ability to create your own loan parameters. If you want a lower interest rate, you can set that and as long as someone is willing to agree to your terms, the loan will be filled.
Constant also does not require a credit check or background check to apply for a loan. All they ask of you is that you possess the collateral for the loan and are a U.S. citizen.
Your collateral for the loan is stored in escrow with BitGo. BitGo uses cold wallets to store your collateral and is insured for up to $100 million. BitGo recently announced the acquisition of Lumina, a tax auditing service which will help provide users insight on their tax liability. Acquisitions such as these help fortify BitGo's position as institutional leader which should in term off ease of mind to Constant users as well.
Why You Might Want To Choose Another Service
The market rate on Constant's loan offerings is 30 days. This is a very short term loan compared to competitors and narrows the type of borrower looking to use Constant's services. Constant recently lowered their maximum repayment period from one year to nine months. You have options to set the repayment period at 30 days, 60 days, 90 days, six months and nine months. All and all, the repayment periods can be quite restrictive, especially in an economic downturn when you might want a bit longer to pay off your loan.
Constant does not allow you to adjust the loan-to-value rate like some of their competitors do. Constant sets their LTV at 66% which means if you wanted to take out a $5,000 loan you would have to post approximately $7,500 worth of collateral. Some competitors allow you to adjust your LTV when shopping for loans, making it easier to find the right loan you need. If you need a lower LTV, Constant is not the loan provider for you.
The only fiats that Constant pays out in is USD and the Vietnam Dong. Basically, if you do not live in the United States of America or Vietnam, you are going to have to take your loan out in a stablecoin and then convert to your fiat of choice. This is an extra hoop to jump through for residents of Europe, Asia, and the rest of the world.
To Wrap It Up
Constant's loan service lacks several key features which would make this a slam dunk. Their loans can be personalized to an extent, but lack a wide range of customization you might find at other venues. Chief among these concerns is the low offering of loan payout options. Constant is really only marketed toward US residents and residents of Vietnam. Offering insurance on their collateral is big, especially since that sort of promise isn't found too often in this space. All an all, Constant offers a great product to a very specific sort of borrower. Perhaps this is the trade off in the P2P lending space: quality versus utility.
Constant Company Review
Const LLC (Constant) was founded in 2018 by Duy Huynh. Huynh is heavily involved in the crypto/tech industry, founding numerous other projects such as Incognito.org whose mission is to bring privacy to the token economy.
Constant started out as a stablecoin company. Their token, CONST, was linked to the US dollar and provided utility to people in troubled economies. Since the launch of their P2P lending service, Constant has grown to a team spanning multiple countries and multiple disciplines.
Constant has approximately 51-100 employees and is headquartered in California, USA.
The are no additional fees associated with depositing or withdrawing assets from Constant.
There is a matching fee for their loan program which charges 1% of the loan if you are borrowing. That fee is waived if you are lending money. There are several other fees associated with the loan program which will be discussed momentarily.
KYC verification is not necessary on Constant in order to start investing your stablecoins. To start earning interest in fiat, you will need to submit standard KYC materials including: name, birthday, email, phone number, country, photo ID and a selfie. You will also need to provide your social security number.
The UX is simple and solid. What stands out are two features: Constant Pro and their membership program. Constant Pro looks and feels like a professional trading interface. It's hard to believe its added as a free bonus for Constant users. Constant's membership program also touts some interesting and lucrative rewards. It all depends on how much you use the system. If you invest or borrow $25,000, you can start getting a fixed referral rate ($15 per referral) plus 15% of all earned interest that your referrals earn for a given year. With each level of membership, these bonuses improve and also unlock other features like PayPal withdraws and bonus interest rates on your investments.
What Constant Does Well
Constant has uploaded a great deal of their open source code to GitHub. In a world of self-verification, this move is paramount and synonymous with the ideals which started the whole crypto movement in the first place. As the industry starts to stabilize, and the transparency narrative begins to take hold, look to companies which have adopted these practices to be rewarded.
To Wrap It Up
Constant has a smooth feel coupled with robust capabilities. The business history is strong and is backed by proven leadership. The Constant customer service team is on call 24/7, they are easy to reach. Constant provides their business address, they have their legal documents displayed, they pass the legitimacy test. Again, as is so common in this space, you must decide if you value legitimacy versus indemnity. Read the fine print, know where your money is and what it is doing. Fortunately for you, Constant makes this processs easy.