Crypto lending platform Salt has halted withdrawals and deposits

&quot;SALT Lending launched in early 2018, allowing cryptocurrency owners to take out a loan using their crypto as collateral&quot;<p>I guess the math for such a business is:<p>- User deposits crypto worth X dollars.<p>- User can take out up to X * Y dollars as a loan.<p>- If the value of the crypto falls below X * Y * Z, it gets liquidated<p>Where Y&lt;1 and Z&gt;1.<p>Any ideas, what Y and Z usually are?<p>I also wonder what the use case for using such a service is? Anybody here ever used such a service? If so, why?<p>My vague feeling is that it is for tax prevention? Say you bought BTC for $1, and now it is worth $101. If you convert it into dollars, you will have to pay taxes on the $100 you earned. If instead you loan $90 and hand over your BTC as collateral, you do not have to pay any taxes, correct?

The silver lining is that, presumably, if you deposited $100 of crypto into SALT in order to borrow $90, and then invested that $90 in other goods&#x2F;services&#x2F;crypto, you probably have the $90 worth of crypto?<p>I mean, hopefully you didn&#x27;t send the $90 to FTX to buy and hold crypto there. If you were holding it in your own wallet, then you sortof only lost the $10 in margin cushion?

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