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Bainance Start lending service on August 28, risk and interest rate

On August 26, Binance, the world’s largest exchange for Altocoin, announced that it will launch a lending service at 15:00 Japan time on 28 August. Binance users can earn interest by using the corresponding virtual currency in their lending service.

Virtual currency that can be lent with Binance Currently, only three virtual currencies that can be started lending in the Binance are the three currencies of Tether USD(USDT), Binanance Coin (BNB), and Ethereum Classic (ETC).

It does not support major cryptocurrencies such as Bitcoin, BTC, and Ethereum. Lending has a maximum limit of 10,000 lots at 100USDT per lot, up to 1 million USDT (approx. 1.06 billion yen) and annual interest rate of 10%, BNB is 50 lots at 10BNB per lot, up to 500BNB annual interest rate,

ETC is up to 1000ETC in 1LOT 1ETC, and the annual interest rate is 7¢.

Interest rate and fixed period The total number of lending is on a first-come, first-served basis, depending on each virtual currency.

The most common USDT 5 million USDT, BNB 200,000 BNB, ETC will be 20,000 ETC and will be fixed lending for two weeks from the deposit at 15:00 pm Japan time on August 28. In other words, if the user lends the USDT, it should be noted that they will not be able to pull it out for two weeks.

You will be able to withdraw the virtual currency you have relented on the maturity date of September 11, and the interest rate you will get in the last two weeks is
USDT: 0.38%
BNB: 0.57%
ETC:0.27% It becomes.

Considering the risk of price fluctuations, it would be better for holders of the currency to do so than to buy to perform lending.
What are the lending risks? The lending provided by the exchange is “loaned out to the trader” by the user who makes the trade to do the short. There are examples of losses and lending users’ assets being cut above margin in the case of exchanges without zero cuts, such as the default case of Poloniex.

In contrast, the lending of Binance is not used in margin trades launched on July 11, and is not considered a default risk because it is offered at a fixed rate. According to Binance, the lending-enabled virtual currency will expand in the future, adding Bitcoin, Ethereum and other alto coins that are more likely to beholders.

Disclaimer - OBN is an informational website which aims to give the latest blockchain related news to the readers. Articles on OBN should not be considered as investment advice. Trading cryptocurrencies is a high-risk investment, every user is advised to consult an expert before making any decisions.