Would you like to earn crypto while you sleep? Binance CEO, Changpeng Zhao says you can through the company’s newly-launched crypto-lending platform. World’s leading cryptocurrency exchange by trade volume, Binance, is expanding its horizon in the cryptocurrency space with a cryptocurrency lending platform dubbed Binance Lending.
Crypto-Lending For BNB, USDT, And ETC
As per an official blog post dated August 26, the crypto exchange will begin offering passive income opportunities for holders of Ethereum Classic (ETC), Binance Coin (BNB) and Stable coin Tether (USDT) starting from August 28, 2019.
This new initiative will provide a value-added service to holders of these three cryptocurrencies by allowing them to lend crypto over a short fixed time period and earn interest while at it, to be paid from August 29 to September 10 for the first interest calculation period.
According to the announcement, users can subscribe from August 28 to August 29 and slots will be awarded on a first-come, first-served basis.
During the first phase of the launch, the lending products will have approximately 14 days to mature and the payout will come immediately after this maturity. Binance native cryptocurrency, BNB, will have the highest annualized interest rate set at 15%, followed by USDT at the rate of 10%, then finally ETC at 7%.
Binance notes that these annualized interest rates will be adjusted based on how the market will respond after the initial phase. Binance also promised to also constantly evaluate this new offering so as to add new tokens and coins depending on demand.
The amounts have been divided into lots of 10BNB, 100 USDT, and I ETC with customers initially hard-capped at 500 BNB, 1,000, 000 USDT, and 1000 ETC for BNB, USDT, and ETC respectively. The lending service will have a total subscription cap of 10,000,000 USDT, 200,000 BNB, and 20,000 ETC.
Margin Trading And New Lending Platform Devised To Work Hand In Glove
Last month, Binance launched margin trading platform for its users. This new lending platform will work concurrently with the margin trading platform like Zhao noted:
“Lending on @binance goes to margin borrowers, who pay the interests. Simple. Very different from other guaranteed-return schemes. We don’t have to look for another place to invest. That’s why Margin is out first.
Spartans get it.”
Notably, Binance margin trading platform charges annualized interest rates of 109% for borrowing BNB and 10.078% for USDT. A few hours prior to the lending platform announcement, Binance publicized that starting from August 27, 2019, the annualized margin interest rates for ETC would be upped to 14.6% (from 7.3%). Zhao reiterated this news of margin trading stating:
“This (lending service) will also increase the availability of funds to lend to margin traders, so expect the (previously low) margin limits to increase a bit.
Again, @binance is just a matchmaker.”