Vauld Lending Platform Review

By Notum DeFi App | Notum DeFi App | 19 Jul 2022

With the development of the crypto industry, it has become evident that users need their own decentralized banks that could provide the same range of services as traditional ones. Given this, a hundred platforms have appeared that allow users to store, trade, and earn passive income with crypto assets. Vauld has become one of these platforms. Find out what features the platform has and what difficulties it has faced against the background of a bear market in today’s article.

What Is Vauld?

Vauld, formerly known as Bank of Hodlers, is a Singapore-based platform launched in 2018. The platform provides a full range of services to meet basic crypto needs. Users of the platform can safely store cryptocurrency, grow their capital, use it for payment, and trade. Vauld developers claim that their platform has deep liquidity and security and provides the best rates for loans and borrowing.

Vauld Lending

Users can earn passive income by allocating their tokens for lending. At the same time, according to the developers, the lending takes place risk-free since all the loans are overcollateralized by at least 150% and are usually repaid within 30 days. Furthermore, the platform provides competitive interest rates on major cryptocurrencies. For example, BTC and ETH holders can deposit their coins and receive about 6.70% APY; BUSD, USDT, or USDP lenders receive up to 12.68% APY, and UNI, FTT, and LINK lenders can earn up to 4.00% APY. In addition, users can choose both fixed and savings deposits. A distinctive feature is that users can withdraw their funds at any time without paying a penalty. Interest is calculated daily and accrued weekly. In addition, the platform provides automatic compounding weekly or at the end of a fixed deposit period.

Vauld Borrowing

Platform users can borrow against their crypto assets. The platform provides competitively low rates for borrowers. The minimum loan amount is $1000. The platform offers some advantages that distinguish it from competitors. Borrowers receive their funds almost instantly and without any additional fees. Users can pay off their debt anytime in any number of payments. The developers of Vauld claim that the platform provides the lowest borrow rates. For example, BTC and ETH — 7.50% APR, stablecoins — 13% APR.

Vauld Trading

Users can easily trade with tokens and even INR fiat currency. The platform does not charge fees for deposits and withdrawals. The only fee that the user pays is the network fee. The minimum deposit amount is $1 of the token value, and there are no maximum deposit and withdrawal limits. In addition, users can earn interest in their crypto assets and trade them simultaneously. The exchange operates according to the order book model, and funds are stored with a trusted Vauld partner — this is the Binance crypto exchange at the time of writing. Trading fees are 0.12% for makers and 0.12% for takers. The Vauld team provides two products for trading:

  • Instant Swap app (available for Android and iOS users) with which users can swap tokens instantly.
  • Pro Trading is the platform for advanced traders who want to trade on an order book.

Vauld: on the Verge of Bankruptcy?

Vauld has suspended withdrawals, deposits, and trading on its platform and is exploring potential restructuring options. In addition, Vauld customers have withdrawn $197.7 million in cryptocurrency from the platform since June 12, 2022, which also damaged the platform’s business. Such a rush was caused by the collapse of Terraform Lab’s UST stablecoin, the suspension of the withdrawal of funds from Celsius, and the liquidation of the crypto-hedge fund Three Arrows Capital.

Vauld’s decision to limit withdrawals came less than three weeks after the CEO stated that the company continues to operate as normal despite unstable market conditions. In a blog post dated June 16, Darshan Bathija said that withdrawals are processed as usual and will continue in the future. But Vauld has become another victim of the fall in cryptocurrency prices this year.

Vauld issued a statement in which it reports that the total deficit is about $70 million. After this statement, their London competitor Nexo came out with an offer to buy the company and even signed a preliminary contract. Vauld representatives reported that the company has assets worth about $330 million and debt worth about $400 million.

As for the Vauld users, naturally, against the background of all the previous events with the collapse of other companies, investors are in a highly negative mood. The official Twitter channel is attacked by hundreds of users with requests to return funds and accusations of fraud.

It is unknown how the situation will be resolved at the moment, but the platform's founders assure us that they are looking for the best solution to satisfy all parties.


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Notum DeFi App
Notum DeFi App

We struggled to find the best platform for crypto investing, so we've created our own. Meet a cutting-edge app to buy, swap, stake, and enter the crypto market with ease today! 👉

Notum DeFi App
Notum DeFi App

We struggled to find the best platform for crypto investing, so we've created our own. Meet a cutting-edge app to buy, swap, stake, and enter the crypto market with ease today! 👉

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