Binance’s seventeenth phase of lending products launched today. The latest phase includes products with a 30-day fixed term.
Users can subscribe for new lending products “From 2020/03/09 12:00 PM (UTC) to 2020/03/10 12:00 PM (UTC),” according to Binance announcement. The calculation starts after that and finishes at 2020/04/09 12:00 PM (UTC). After the loan term matures, the exchange will announce the interest payout time.
Two new products are in Binance’s 17th lending product cycle. BUSD is the first one that will be launched with 30-day time to maturity and a 15% annualized interest rate. Besides, the lot size is limited to 100 BUSD, and the total subscription cap is 50,000,000 BUSD. USDT is the other currency to be provided in the new phase. Its terms are like BUSD, but the annualized interest rate is limited to 12%. All the other conditions are the same. BUSD is Binance’s stablecoin pegged to US Dollar, and USDT is the famous stablecoin, Tether.
Binance lending service lets the users deposit cryptocurrencies and earn awards at fixed or flexible rates. The first round of subscription ran in August 2019, and major cryptos like BNB, ETC, and USDT were provided. The lending service currently allows subscription for BTC and BNB alongside the two new products.
Some users prefer holding (HODL) their crypto assets rather than trading them with fiat or other cryptocurrencies. Lending services are an excellent choice for them because it gives them more gain over time. Exchanges and lending platforms earn money by trading users’ crypto and pay them the fixed rate. So, it can be considered as a win-win.
There are many crypto lending platforms active now, and some believe the lending is the future business model in the cryptocurrency ecosystem. Some major exchanges like Coincheck, Bitfinex, and Poloniex have lending services like Binance. Their credibility caused by a significant user base among cryptocurrency traders makes it easy for lenders to trust them.
There are other platforms exclusively active as lending platforms. YouHodler, BlockFi, and Celsius are some of them which accept lending subscription now.