Altcoin News: Binance Will Launch a Cryptocurrency Passive Income Service
August 26, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
Binance Exchange launches the Binance Lending service, which will allow users to earn money on the unused cryptocurrency located on their accounts. This is stated in the user agreement, which was published today in the exchange support section.
Assets provided for use through Binance Lending will be used to finance margin positions. The company notes that it will distribute interest payments in accordance with its own rules, which the user agrees to by participating in the program.
“Would you like to earn #crypto while you sleep? Keep an eye on Binance today,” wrote Changpen Zhao, CEO of the exchange on Twitter.
In the agreement, Binance also notes that the user is responsible for his investment decisions and compliance with applicable laws in his jurisdiction regarding the sources of funds.
According to CoinDesk, the Binance Lending service will be available to customers on August 28 and will be provided by subscription in a live queue. Initially, users will be able to borrow assets in USDT, Ethereum Classic and Binance Coin.
The annual interest rate for the first product with a fixed maturity of 14 days is 15% for BNB, 10% for USDT and 7% for ETC. The subscription limit will be set at 200,000 BNB, 5 million USDT and 20,000 ETC. If all available limit is used up, the exchange will pay 1,150 BNB, 19,178 USDT and 53 ETC as interest.
For example, if a user subscribes to 10 lots of BNB and thus provides 100 BNB, the interest payment in his case will be 0.057534 BNB x 10 = 0.57534 BNB.
According to the Binance blog post, BNBs used in the Binance Lending program will be taken into account when calculating the user’s account balance for participating in initial exchange offerings (IEO) on the Binance Launchpad platform and gaining access to other preferences.
In the future, the exchange intends to change the interest rate used in Binance Lending, depending on how the first stage is met by the market.
Also today, Binance announced the addition of a number of new pairs with USDT: DENT / USDT, MFT / USDT, KEY / USDT, STORM / USDT, DOCK / USDT, WAN / USDT, FUN / USDT and CVC / USDT. They will become available to Binance.com users on August 27.
Last week, it became known that Binance will launch a network for developers in its ecosystem called Binance X.
Author: Marko Vidrih
