Passive income: Binance’s great new lending feature!

Passive income: Binance’s great new lending feature!

By d-erf | Cryptips | 27 Mar 2020


Hi there!

 

First post for me!

 

This article for passive income fans!

 

Binance has extended its lending offer yesterday with the customizable fixed lending deposits.

 

Lending is one existing way to earn, i find very interesting as part of personal strategy.

 

At first, you can have an annual retribution rate that reach 15% on stablecoins, which are quite out of speculation, for comparison here with traditional banking where interest rates for holding with no risk are currently between 0 and 1% most of cases.

 

On the second hand, when you are committed to hold because the market went down during a long time, it is a mean to make this generate interest during this time instead of pure holding and waiting, depending of what lending options are available on the platform you use.

 

I’ll make a more detailed article describing all lending options.

 

For now, i wanted to highlight this Binance new feature.

 

Before this feature arrives, i was obliged to check announcements on Binance website to know if a new lending campaign was announced.

The campaign was announced like a week ago, and was always open during 24h for subscribing: so it was quite rigid.

 

Now it is possible to enroll yourself in a customizable fixed lending deposit, it means i can when i want lend some of the proposed currency during a number of days i choose between 7, 15, 30, 90 days, beginning now and that’s all!

 

See an example with BUSD:


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351665157-cd7e7cf409675f41dea508436ef7bc5509aae382d26313bbf1beaddde50b7390.png


As you can see, for now customizable products targets 2 stablecoins: BUSD aka binance usd 1:1 stablecoin and the well know USDT.

 

So you know at the subscription moment how much you will earn, at least 7.6% annualized for BUSD currently.

 

Precision on “annualized” word: if you lend 100 BUSD at 7.6% during 7 days, it means you will earn 7.6% / 365 days x 7 days = 0.1457% of your capital = 0.1457 BUSD, for only holding like with pretty less risks (stablecoins!), and on 7 days only of holding you’ll have the same rate than in a year of banking holding de facto.

 

When under lending, you won’t be able to use the amount your lend, the amount of currency is hold, at the end of this period your capital + interest will be automatically go back available in your spot wallet.

 

Last remark: it works by 100 units lots, that means you can (for now) only lend by multiple of 100 of that cryptocurrency, with no auto growing, hope Binance could one day be more flexible on this.

 

On another article i will speak on other lending options, including growing ones.



Let’s talk about it in comments!

 

See you friends, take care!



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