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What is Binance Lending? All About Lending On Binance

lnhngn 11/11/2021 22:48 888 views
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About Binance Lending

The concept of lending or borrowing is no longer a new concept for investors. As can be seen, these two terms have appeared in previous independent virtual currency projects such as NEXO, ETHLend, Constant, Maker, Compound…

Gradually, lending solutions are becoming more and more popular on crypto exchanges. And Gate is one of the first names with its margin lending.

The race track became more and more dramatic when on August 26, 2019, Binance officially announced that they would launch their own lending platform. This is considered the beginning of the lending trend on exchanges. And after more than two years of operation, Binance lending has reaped certain achievements.

What is Lending?

Lending is a form of lending money or property from one person to another at a certain interest rate for a specific period of time. After the period ends, the borrower will return both the loan amount and interest to the lender. The benefit of lending is that you will receive both capital and interest, money generates money.

What is Binance Lending?

Binance lending is a form of investors lending a certain amount of Crypto assets to the Binance exchange platform (BNB, USDT, ETH …) and will receive interest accordingly when the loan period expires.

  • Lender: A user like us.
  • Borrower: Binance.

This form is somewhat similar to some coins of the Staking Rewards Program on Binance. These are coins like XLM, ALGO, KMD, QTUM, STRAT.

What makes the main difference is that Binance will be the one paying the interest for everyone while Staking Rewards the projects will be the payer.

​The way that Binance cleverly paved the way for their lending service was to launch a “DeFi Series #1” research in June 2019 to introduce an overview of the lending and borrowing markets in the world. electronic money.

Basic information about Binance Lending

You can completely trust Binance lending with the following transparent details:

  • Official launch date: 13:00 on August 28, 2019 (GMT+7).
  • Loan period: 14 days.
  • Interest payment period: After the expiry date.
  • Subscription to lend: 13:00 on August 28, 2019 (GMT+7) to 7:00 on August 29, 2019.
  • Cryptos that will support at first: BNB (15%), USDT (10%), ETC (7%).
  • Format: First come First serve
  • Note: This interest rate is not fixed, may change depending on each period and Binance’s policy.

Review of Lending on Binance

Advantages

  • High level of security: Binance is one of the big names on the virtual currency exchange. In addition to its trusted position, Binance also has a SAFU system that protects/compensates user assets when unforeseen circumstances occur. So people can trust using Binance, including lending services.
  • Friendly interface, simple operation: With just a few clicks, you can join and execute loan orders, adjust interest rates or set repayment time.
  • Massive Lending Volume: People can lend up to $1 million with USDT, about $12,500 with BNB, and about over $7,000 dollars.
  • Optimizing user assets: Assets currently available on the floor but you still don’t know what to use, this is a profitable opportunity for yourself.

Disadvantages

  • Low interest rates, uncompetitive: It seems that being born for more than two years makes Binance still not offer an attractive interest rate for lenders. Most lending interest rates are just equal to or lower than other competitors.
  • The amount of Crypto participating in lending is small: Currently, there are only three types of assets that can be used at Binance lending: BNB, ETC, USDT for lending. Binance is also planning to expand to more categories.
  • The loan term is not flexible: Currently, there is only one level of 14 days for the lender to lend.

However, many experts believe that in the near future, Binance can soon overcome all of these disadvantages. Because of the new establishment, limitations are inevitable, but we can completely sympathize with those shortcomings.

Who should join Binance Lending?

With the goal of encouraging users to participate, helping them increase the amount of idle assets on the exchange, Binance lending is really suitable for those who want to make a profit from their empty assets, because they have not had time to invest and develop.

Binance Launches Cryptocurrency Lending Products, Expanding Offerings  Beyond Trading | Binance Blog

Lending is the right form for such participants. Although currently, the interest rate only ranges from 7, 10, 15% – still quite low compared to the market, but with safety and above all earning a passive income, there is no reason to non-investors lending of Binance.

Instruction for lending on Binance

You need to know the following information before joining Binance lending.

  • Lot Size: This is the loan limit for each Lot.
  • Maximum Subscription: The maximum number of Lot that you can join.
  • Coupon Per Lot: The profit received after the loan date expires.
  • Value date: The date the interest rate begins to be calculated.
  • Redemption Date: The date you must repay the interest and principal.

Find out more detail at: https://www.binance.com/en/support/faq/360041278132

Notes when lending on Binance

When participating in Binance lending, you need to pay attention to a few things:

  • Ensure enough account balance to participate in lending.
  • Calculate the total interest received before accepting lending.
  • Only participate when the asset is idle, do not know how to use it on any occasion.
  • Mentally prepare for the worst case that lending rates will drop.

Above is the basic information of lending on the Binance exchange. Hopefully, through this article, you will have another way to invest to enrich yourself.


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lnhngn

"Don't invest in what you don't know. Learn first then invest"