One of the biggest cryptocurrency exchanges by trading volume is announcing the implementation of the first-ever crypto lending product in the crypto industry that’s sponsored by a major exchange. According to the official announcement, Binance will launch its lending platform on August 28th, 2019.
With this new lending product, customers will be able to grow their funds by earning interest income for lending out their holdings over a specific period of time. Through the first phase of launching, a 14-day fixed product will be made available for BNB, USDT, and ETC. As detailed in the announcement, the subscription period will begin on August 28th, 2019, and will last until 2029. The term to maturity is set to 14 days with an annualized interest rate for BNB of 15%, USDT of 10% and ETC of 7%. The interest payout term is immediately after the loan term matures and the subscription format is first-come-first-served based.
|Digital Asset||Total Subscription Cap||Individual Cap||Annualized Interest Rate||Lot Size||Interest Per Lot at Maturity|
|BNB||200,000 BNB||500 BNB||15%||10 BNB||0.057534 BNB|
|USDT||10,000,000 USDT||1,000,000 USDT||10%||100 USDT||0.383561 USDT|
|ETC||20,000 ETC||1,000 ETC||7%||1 ETC||0.002685 ETC|
Example: If User A subscribes to 10 lots of BNB Lending (total lend of 100 BNB), the interest earned at maturity date will be 0.057534 BNB x 10 = 0.57534 BNB.
Furthermore, the announcement specifies that the annualized interest rates could be adjusted for upcoming phases based on the market reception of this initial phase. Binance has also added an entire FAQ section where it details the specifications of the Lending Service Agreement, Lending Service User Agreement and an easy-to-understand guide on How to use Binance Lending Service.