An Indian crypto exchange has launched a program that allows its users to earn interest on their held at the exchange. Initially, users can lend , USDT, BNB, XRP, and ETH. The CEO of the exchange has shared details about this new offering with ..com.
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Lending Cryptocurrencies
Coindcx announced Thursday that its crypto lending program called Dcxlend has come out of the beta testing phase and is now fully launched. Five are supported: , USDT, ETH, XRP, and BNB.
The exchange’s website currently displays monthly interest rates of 2 percent for , 1 percent for USDT, 1 percent for BNB, 0.75 percent for XRP, and 0.75 percent for ETH. CEO Sumit Gupta told ..com that has the highest interest rate “because our traders mostly do margin in markets (hence high demand for lenders).”
The exchange detailed that there are “three lending term lengths: 7 days, 15 days, and 30 days. The interest rate varies dynamically and goes up to a maximum of 2%, according to market dynamics — demand and supply.” Furthermore, its website states that “the lent through Dcxlend will be used to provide leverage to users on Dcxmargin,” another service the exchange offers.
Gupta shared with ..com that during the beta testing period with just and USDT, “we had roughly 120 lenders which led to a circulation of 170 on a daily basis.” Claiming that the program has recently garnered more attention from lenders, he remarked, “Hence we’re scaling it up and will keep on adding more coins.”
The CEO explained that his exchange has an internal settlement and liquidation mechanism for margin which does not have “a dedicated funding ,” elaborating:
Funds are then lent to the users only when the margin trade is open, with no withdrawal access and hard liquidation with 7.5% maintenance margin.
Similar Programs Worldwide
In the U.S., Blockfi recently a savings account that enables to earn 6.2 percent annually on their and ETH. Meanwhile, regulated derivatives exchange and clearinghouse Ledgerx has a program called Ledgersavings which allows clients to earn an implied rate of around 16 percent annually.
In , regulated exchange GMO Coin a lending program for , BCH, ETH, LTC, and XRP last year. However, at the time of this writing, the exchange is only borrowing but can lend between 10 and 500 over 181 days and earn up to an annual rate of 5 percent.
Recently-licensed Japanese exchange Coincheck, which was in January last year, also has a lending program for with a maximum annual rate of 5 percent. Prior to the hack, this service supported 12 .
Bitbank, another regulated Japanese exchange, also up to 5 percent interest annually for users lending between 1 and 25 . Besides , the exchange plans to extend the offer to BCH, ETH, LTC, XRP, and MONA.
Would you lend your to an exchange? Let us know in the comments section below.
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Published at Thu, 21 Mar 2019 04:17:36 +0000
