ZebPay’s lending service offers users an opportunity to increase value of their holdings, by offering interest on top assets.
Whether or not, the recent dumps can be called the beginning of the next crypto winter is debatable. However, the equation this time is completely different than that of 2017 Euphoria’s demise. In 2021, stable coins are the most popular choice for newcomers and experienced traders to hold their wealth when the market turns.
There are of course benefits to hold one’s wealth in BTC, but for traders who are in it for the money, what better way to measure their wealth in a stable coin pegged to the most popular currency in the world, the USD.
The question to ask here is, when you do decide to stop trading, for whatever reason, how do you make your holdings work for you and generate a passive income source?
The answer we are looking for here is Lending. What if, just like banks, you were paid interest to lock in your crypto funds with the exchanges for a fixed term?
This idea is making waves in the industry already, and now joining the race to provide lending services to its users, is one of India’s oldest and biggest exchange ZebPay. So the question here is, how can the millions of users holding their assets on the platform get more value from their holdings? By receiving interest on them.
What is ZebPay Lending Service?
The lending service launched on Tuesday offers annualized yields upto 12% on various different crypto assets.
Currently available on the platform are Bitcoin (BTC), Ethereum (ETH), Tether (USDT) and DAI. ZebPay will be adding more assets in the future. They offer different interest rates for different assets, which also change for different durations of deposits.
There are two ways to earn interest of your holdings.
- Open Term: User receives interest everyday on their holding, the lending service can be terminated at any time.
- Fixed Term: User locks the funds for a certain time and receives the interest generated at maturity.
Currently there are no charges for closing the Fixed term lending before maturity, but the interest earned will be lesser than usual.
Here are the annualized yield rates on the platform.
How to Lend Funds on ZebPay?
Lending on ZebPay is fairly easy and straight forward. Update ZebPay app, navigate to the “Lend” window by pressing on “Lend” in the bottom menu.
Once on the lending page,
- Choose which crypto you would like to deposit – BTC, ETH, USDT, and DAI.
- Select your deposit type (Open or Fixed) and how long you want to keep your deposit.
- Review the terms and conditions, before confirming your deposit.
In case of fixed Term, users can see the amount they will receive at maturity before confirming the deposit.
Users can also choose to allow Auto renewal on their deposits. That way, users can continue to earn interest without having to do anything manually.
Benefits on Crypto Lending
As I said in the beginning of the article, investors are now holding their assets in stable coins or large cap coins like BTC and ETH during downward cycles of the market. While holding on to these assets, if held in exchange, there is no value generated from it, which changes with lending.
If a user decides to hold some USDT for a couple months, to wait for the right time to use them, they can lend it and earn interest on it while waiting.
That doesn’t mean that Crypto Lending is free from risks.
All risks that apply to centralized exchanges such as security breaches, hacks, lost funds, etc apply here as well. At the end of the day, user funds are held in custody by the exchange.
Hence, it is advisable to use platforms that have good teams, clean history and of course the ability to pay from their pockets incase a hack affects user funds.
If you try the new lending platform on ZebPay, do not forget to let us know how it went. Join our telegram group and chat with thousands of users.
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