Indian Exchange Launches Lending Program Which Allows Users To Earn Interest
According to a recent report, a crypto exchange in India has launched a program which enables users to earn interest on their virtual currencies which are being held by the company. Customers are able to lend USDT, ETH, BTC, XRP, and BNB.
Cryptocurrencies lending program no longer in beta testing
Coindcx has revealed that Dcxlend is no longer in the preliminary stages, it is now a fully launched crypto lending program and it supports 5 coins; USDT, ETH, BTC, BNB, XRP.
According to the exchange’s website, a monthly interest rate of 2% is placed on BTC, 0.76% for XRP, 0.75% for ETH, 1% for BNB, and 1% for USDT.
The Chief Executive Officer of Coindcx, Sumit Gupta said that:
“because our traders mostly do margin trading in BTC markets (hence high demand for BTC lenders).”Sumit Gupta
The lending periods are divided into three which are: 7 days, 15 days, and 30days and interest rate for each varies and can reach up to 2% depending on market dynamics- demand and supply.
While explaining the exchange’s experience while the program was still undergoing a beta test, Gupta said that: “We had roughly 120 lenders which led to a circulation of 170 BTC on a daily basis.”
He went ahead to say that:
“Hence we’re scaling it up and will keep on adding more coins.”Sumit Gupta
Claiming that the program has recently caught the attention of lenders.
Also, the CEO revealed that there are an internal settlement and liquidation mechanism for margin trading which doesn’t have a dedicated funding wallet in place in the company.
He explained that:
“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.”Sumit Gupta