Author: Journalist Benedict
What is Loan-to-Value (LTV)?The Loan-to-Value ratio, commonly referred to as LTV, shows how much of an asset’s value a lender is willing to finance through a loan. It’s usually expressed as a percentage and helps lenders measure the level of risk in a loan deal. In general, the more “desirable” or stable an asset is, the higher the LTV a lender may offer. An asset’s desirability depends on factors like how steady its value is, how easy it is to sell in the secondary market, and how smoothly ownership can be transferred. Key Points to Know About LTV How Do…
The Loan-to-Value (LTV) ratio is a key metric used by banks and lenders to evaluate the level of risk involved before approving a home loan or mortgage. It compares the size of the loan you’re requesting to the current appraised value of the property you want to buy. Generally, loans with a higher LTV ratio are seen as riskier, and because of this, lenders may charge a higher interest rate to cover the added risk. If your LTV ratio is high, you might also be required to purchase private mortgage insurance (PMI), which protects the lender in case you fail…
Collateral liquidation is one of the most crucial processes in decentralized finance (DeFi) lending systems. It happens when a borrower’s collateral is automatically sold to repay their loan if the value of their collateral drops below a set limit. This process is vital because it helps protect the DeFi platform from losses, keeps lenders’ funds safe, and ensures the entire system remains stable and trustworthy. Liquidation helps maintain proper collateralization ratios, which are essential for the health of DeFi protocols. If these ratios are not met, the system becomes at risk of insolvency. By enforcing liquidation rules, DeFi platforms prevent…
On-chain credit is a blockchain-based system that allows lending and borrowing to happen in a decentralized, permissionless, and borderless way. It removes the need for banks or middlemen and helps people who can’t access traditional credit services, like the unbanked, underbanked, or those with no formal credit history. Unlike traditional loans that usually require collateral or credit scores from central agencies, on-chain credit can issue loans based on someone’s income, on-chain behavior, and digital reputation. This opens up a new way to borrow and lend that’s more flexible and inclusive. In fact, the market for tokenized private credit grew by…
Explore how flash loan attacks expose hidden risks in decentralized finance, compromise blockchain security, and lead to massive crypto losses. 1. Introduction to Flash Loan Attacks 1.1 What Are Flash Loan Attacks? Flash loan attacks are one of the most serious security threats in the world of decentralized finance (DeFi). These attacks take advantage of weaknesses in DeFi protocols and can cause major losses for users, platforms, and liquidity providers. But what is a flash loan? A flash loan is a special type of loan in DeFi that doesn’t need any collateral. Traditional loans require you to offer something of…
Your Complete Guide to Thriving in the Booming E-commerce Industry (2025) Introduction: Kenya’s Booming Digital MarketplaceKenya’s e-commerce industry is experiencing tremendous growth. Today, anyone with internet access and the right products can sell to customers across the country—right from their home. This is the power of online selling. It has transformed the way Kenyans shop. People now go online to compare prices, read reviews, and search for better deals before making a purchase. Think about it—how often do you buy something without checking online first?This shift in behavior has opened massive opportunities for sellers. Whether you’re an experienced entrepreneur or…
Tensions flared into full-blown chaos at the Machakos County Assembly after a heated disagreement among Members of County Assembly (MCAs) led to a violent physical confrontation over proposed changes in the assembly’s leadership structure. The dramatic scenes unfolded during a session where fists and kicks were thrown freely among lawmakers, following a bitter standoff triggered by alleged efforts to reshuffle key leadership roles—particularly on the minority side of the house. According to reports, the chaos began shortly after the Speaker of the County Assembly formally announced leadership changes said to have been initiated by the Wiper Democratic Movement. The Speaker…
Super Metro Sacco has broken its silence following a road accident involving one of its buses that overturned along the busy Thika Superhighway. The incident occurred near Burudani Address in Juja and resulted in injuries to several passengers, causing panic among commuters and creating a major traffic jam along the highway. In a statement issued on Tuesday, June 10, Super Metro clarified that the accident was caused by a speeding lorry that lost control and hit the bus. According to preliminary investigations, the lorry was swerving at high speed before it rammed into the Super Metro bus, causing it to…
Treasury Cabinet Secretary (CS) John Mbadi has firmly denied recent claims that the government is planning to introduce Value Added Tax (VAT) on essential goods like bread, milk, and maize flour (commonly referred to as unga) in the proposed 2025 Finance Bill. Speaking at a town hall meeting held in Kibera, Nairobi, CS Mbadi addressed growing concerns by clarifying that these rumours were not based on the actual contents of the bill. He dismissed the allegations as false and described them as propaganda allegedly created and spread by opposition groups for political gain. Mbadi emphasized that none of the mentioned…
As cryptocurrency grows from a niche investment to a major asset class, governments around the world are figuring out how best to regulate it. By September 2024, some countries had introduced clear rules to protect investors and limit misuse, while others are still observing and planning. Key Highlights United States In 2022, the U.S. introduced a regulatory framework that gave authority to bodies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to oversee crypto activities. The SEC, in particular, has taken a strong position by filing lawsuits against major crypto companies like Ripple, Coinbase,…