PremiumMUMBAI: ZebPay on Thursday launched a lending platform where investors can lend their coins to the cryptocurrency exchange and earn returns depending on the token and the time period it is loaned for. The exchange has started off the facility with bitcoin (BTC), ether (ETH), tether (USDT) and dai (DAI).
According to the company, the ZebPay Lending Platform generates returns on users’ crypto investments if they lend the select cryptos.
Depending on the term of deposits, users will be able to generate returns of up to 3% on bitcoin, up to 7% on ether, up to 7% on dai and up to 12% on tether.
This can help provide investors an opportunity to earn a passive income by adding on to the returns gained from rise in crypto prices.
Lending facility will be available in two options — open term and fixed term.
Under the open term, investors will not need to lock-in their crypto and they will earn returns as applicable for the day, with the returns being deposited in the investor’s trading wallet along with the principal amount.
The fixed term allows investors to lend their crypto for seven-day, 30-day, 60-day and 90-day periods, with the rate of return varying for each. In this case, tokens cannot be withdrawn before the end of the term.
In case the investor chooses to withdraw early, a small penalty will be applied. Upon maturity, the returns earned will be deposited in an investor’s trading wallet along with the principal amount. The returns offered on the ZebPay Lending Platform will be calculated directly based on the amount of crypto an investor holds.
“We have always believed that crypto will enable a multi-fold increase to investors’ wealth. ZebPay has always encouraged investors to hold on to their crypto for the long-term in order to benefit from the best possible returns. Through the lending platform HODLers, as we call them, can earn passive returns on top of those gained from a rise in crypto prices. The crypto holdings of customers are essentially going to do the work for them as the investors earn passive income with ease," said Avinash Shekhar, co-CEO, ZebPay.
‘HODL’ stands for “hold on for dear life", which suggests that one is holding onto their cryptocurrencies despite the price dips.
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