India's oldest and most widely used Bitcoin and crypto asset exchange ZebPay, on May 27th, announced the launch of the ZebPay lending platform. It would be the country's first of its kind crypto lending model.
This new platform allows users to lend their coins to ZebPay, thus obtaining returns depending on the coin and the time period it is loaned for. ZebPay claims to generate returns on users' investments in cryptocurrencies if they lend out to specific cryptocurrencies, providing an opportunity to earn passive income by adding on to the returns gained from rising crypto prices.
Following the launch, the ZebPay Lending Platform would support Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and Dai (DAI). Users will be able to generate returns of up to 3 percent on their Bitcoin (BTC), up to 7 percent on Ethereum (ETH) and Dai (DaI),
and up to 12 percent on Tether (USDT), however, it will depend on the term of the deposit.
“ZebPay has always encouraged investors to hold their cryptocurrencies for the long term to benefit from the best possible returns. Through the ZebPay lending platform, owners, as we call them, can earn passive returns on top of those gained from a rise in crypto prices. ZebPay customers' holdings will lead to cryptocurrencies. Essentially the task, as investors earn passive income with ease,” ZebPay Co-CEO Avinash Shekhar said.
“We have always believed that cryptocurrencies will enable multi-fold increase to investors’ wealth. With the launch of the ZebPay lending platform, we want to give users the opportunity to increase their investment, making their existing cryptocurrency holdings do all the work.” Avinash added.
Investors will not need to lock their cryptocurrencies under an open-term deposit and will earn returns as appropriate for the day, and the returns will be deposited into the investor's trading portfolio along with the principal amount under the open term. The fixed-term allows investors to lend their cryptocurrencies for periods of 7-day, 30-day, 60-day, and 90-day periods, with the rate of return varying for each. Therefore, tokens cannot be withdrawn before the term's end.
When matured, the returns earned will be deposited into the investor's trading portfolio with the principal amount. Depending on how much cryptocurrency the investor owns, the returns shown on the platform will be calculated directly.
The new lending option has already been launched in the revamped version of the existing ZebPay app. The user just needs to update to the latest version and the lending option will automatically show up.
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