Not even a week ago Binance announced its product called Binance Lending, providing users with the ability to lend their cryptocurrencies to the platform in order to receive interest.
Today a statement was released explaining the phase two of the Binance Lending system with its latest news.
The cryptocurrencies supported by this service are:
- Binance Coin (BNB);
- Ethereum Classic (ETC);
- Tether (USDT);
- Cardano (ADA);
- Ethereum (ETH);
- Bitcoin (BTC).
Binance Lending phase two: news about the product
Binance Lending, in its second phase, will operate through the first-come-first-served approach, so the first users who will be able to subscribe to the program will also be those who will benefit most, taking into account the fact that a cap has been set for each crypto.
Loans with different interests and time frames
While previously the service was based on a minimum period of 14 days, now a 28-day loan has also been introduced which adjusts both the subscription cap (the maximum amount that Binance will be willing to accept in total) and the interest rate. Binance Lending thus splits two different groups of loans into 14-day and 28-day loans.
- Binance Coin (BNB) / subscription cap = 200,000 BNB / annual interest = 10%.
- Tether (USDT) / subscription cap = 10,000,000 USDT / annual interest = 8.25%.
- Bitcoin (BTC) / subscription cap = 500 BTC / annual interest rate 3.25%.
- Tether (USDT) / subscription cap = 20,000,000 USDT / annual interest = 8%.
- Ethereum Classic (ETC) / subscription cap = 20,000 ETC / annual interest = 7%.
- Cardano (ADA) / subscription cap = 10,000,000 ADA / annual interest = 6%.
- Ethereum (ETH) / subscription cap = 10,000 ETHs / annual interest = 6%.
- Bitcoin (BTC) / subscription cap = 1,000 BTC / annual interest rate 3%.
It is curious to note that the annual interest rate has decreased considerably compared to the one shown a week ago, especially with regard to BNB. In the previous announcement, Binance was supporting interest rates of up to 15%, which disappeared completely with this service upgrade.
Previously BNB guaranteed an annual rate of 15%, ETC of 7% and USDT of 10%, while now BNB has been reduced by 30% from 15% to 10% and with the only possibility to make a loan for 28 days.
The introduction of bitcoin (BTC) and ethereum (ETH) in Binance Lending, respectively the second and third most traded assets in the cryptocurrency landscape according to CoinMarketCap, was very well received.
Previously, the subscription cap for BNB was reached in just 16 seconds with 502 participants, while for USDT it took 3 minutes and 24 seconds with 306 participants; slightly more for ETC, which reached the cap in 9 minutes and 48 seconds with 124 participants.