A crypto exchange based in India has introduced new lending program for five cryptos. The program will enable the users to run a number of errands. But key among all these is that they will be able to earn interest on their cryptos held at the exchange. At the beginning, users will be able to lend USDT, BTC, ETH, XRP, and BNB.
The Main Lending Cryptos
The Indian company that launched this great program is known as Coindcx. The lending program is known as Dexlend. On Thursday, 20th of March, Coindcx announced that the program is already out of he beta stage. It is now ready to support the five already mentioned cryptos.
As at now, the site of the exchange shows monthly interest rates of 2% for the Bitcoin, 1% for both the USD Tether as well as the BNB coin. Both the Ethereum coin and the Ripple coin have managed 0.75% respectively.
This is the official report that was provided by the chief executive officer of the exchange, Sumit Gupta. He explained the high interest rate of the company and pointed out that traders mostly do margin trading in the Bitcoin Core markets. This is one of the things that have led to the high demand of Bitcoin by its lenders.
The Lending Term Lengths
The exchange went ahead to clarify on the various lending term lengths that are in store. There are three major lending term lengths. These main lengths include 30 days, 15 days, and 7 days. The rates of interest changes in a dynamic way and would usually increase to a maximum of 2%. This will, however, be based on the main dynamics of the market, which is basically the demand and supply.
The website also goes ahead to give other important information. It states that the crypto lent via Dcxlend will be used in offering leverage to users on the Dcxmargin. According to the CEO, there were close to 120 lenders that led to a circulation of 170 Bitcoin Core on a daily basis.
Similar Programs In The Rest Of The World
Another US-based exchange also recently launched a program of that sort. The exchange is known as Blockfi. It creates a savings account that allows its users to walk away with a whopping 6.2% yearly on their Ethereum and Bitcoin.
Another program was also launched by a leading regulated BTC derivatives exchange in the United States. The program known as Ledgersavings was introduced by Lergerx, a well known clearing house. This new program will give the users an opportunity to get an implied rate of around 16% on a yearly basis.
In Japan, a similar program was also introduced. This program was launched by GMO, a regulated exchange platform. It created a lending program to be used by customers trading with the following coins; Ripple, Litecoin, Ethereum, Bitcoin Cash, and Bitcoin Core. It has , however, been confirmed that the exchange is only serving the Bitcoin Core users.