In a nutshell: After the sharp decline in May, the entire crypto market mainly traded in a volatile sideways trend. Despite the high volatility, crypto lending rates remained mainly stable across most platforms. This article series shows you the main movers, the shakers, and the innovators. Follow this Medium profile for more insights, and profound analyses.
BlockFi
BlockFi lowered its interest rates for BTC, ETH, LINK, LTC, PAXG, and all Stablecoins held in a BlockFi Interest Account (BIA) on July 1st, 2021 once again. They also changed their Tier system, reducing the number of coins eligible for higher rates.
They informed their users in an e-mail, and also via social media. The response of the community was expectedly not very amused, to say the least. Many users are still loyal or use more than one platform at the same time.
The positive news about BlockFi is: since July 1st you can earn interest on your DAI, BAT, and UNI deposits.
Celsius Network
Contrary to BlockFi, the lending platform run by Alex Machinsky and Nuke Goldstein left its rates completely untouched. Celsius confirmed that they hold 107,900 Bitcoin in community assets and invests more than $200M in Bitcoin mining in North America. According to Machinsky more than 10,000 people have already signed up for the celsius credit card, and are on their waiting list now. Also, Celsius increased their maximum rates, some people in the industry are whispering, that could be a response to BlockFi dropping the rate significantly again, up to 50% for deposits larger than 5 BTC. So for now at Celsius, the maximum rate for BTC holdings is 6.20%, for ETH 6.35%, and for USDT 11.21%.
Crypto.com
One of the most known platforms, crypto.com with their own token “CRO”, raised the base rate for ETH to 3.5% APY, and left other rates untouched. They announced the ambitious goal of becoming 100% carbon negative within the next 18 months across the entire organization. We will update you on this, whenever there is news to publish.
Nexo.io
The player from Switzerland, already founded in 2017, left its rates untouched as well. Nexo has paid out its fourth dividend worth more than $20M USD to all eligible Nexo Token (NEXO) holders. Nexo has added the ADA and DOT token to its platform with a current lending rate of up to 8% APY and a borrowing rate starting at 6.9% APR.
Cake
Same as Celsius and Nexo, the platform run by Julian Hosp and its team left its rates untouched. They celebrated their second birthday since launch day with a growth of 30k new customers in May (150,000 users in total) and 16,000 BTC in customer assets on the platform. Their EBITDA excluding capital gains is $10M as of May 2021 and Cake also announced its so-called VIP-Program. From July 9 on Cake will pay out a relatively high rate on USDC with an APY of 8%.
Aave
The big DeFi lending platform now has a total value locked (TVL) of $16.7 billion USD in the protocol: with almost 33% of funds coming from its deployment on layer-two, Polygon. Aave v2 is currently the largest decentralized protocol by assets locked in the protocol.
Native tokens update:
The native tokens of the leading crypto lending platforms performed since May 31:
CEL: -5.1% ($7.25 to $6.88)
DFI: -25.1% ($3.07 to $2.30)
NEXO: -25.1% ($1.93 to $1.56)
CRO: +9.2% ($0.11 auf $0.12)
Summary: many players are stable and seem to know what they are doing and where they are heading to. Some are either struggling to keep their attractive rates up and running, due to their general business model or due to market changes, as they put it officially.
We will update you on the latest developments here, follow us on Twitter as well for constant updates.
Daily updated rates: https://www.cryptostudio.com/lending-interest-rates/
Cheers & enjoy your compound interest, everyone!
Original article: https://cryptostudio.medium.com/crypto-lending-update-july-2021-67001291bce7
