Coindex, an Indian Cryptocurrency exchanges has created a lending program. The program will allow its users to lend five virtual currencies namely ETH, XRP, BNB, USDT, and BTC. The exchange will offer interest rates that range from 0.75 percent to two percent. Coindex CEO Sumit Gupta shared the details on the new program on Thursday.
Users To Earn By Lending Cryptocurrencies
Coindex exchange has said that Dcxlend, the lending program, is now fully launched after coming out of the beta testing phase. The virtual currency trading website added that the program would support five coins namely Binance Coin (BNB), Ripple (XRP), Ethereum (ETH), Tether (USDT), and Bitcoin (BCT).
The exchange has already displayed the different interest rates for different coins on its website. ETH, XRP, and BNB will have monthly interest rates of 0.75 percent, 0.75 percent, and 1 percent respectively. USDT and BTC will have interest rates of 1 percent and 2 percent respectively. While explaining the difference in interest rates in different coins, Gupta said that margin trading in BTC markets is the most common on the website leading to high demand for its lenders.
Coindcx Exchange To Support Three Lending Term Lengths
Coindcx clients can borrow from the exchange for three different lengths namely one week, 15 days, and 30 days. According to the Crypto trading platform, the interest rate will vary and can go to a maximum of 2 percent. However, the rate will still be determined by demand and supply. When there is high demand for loans, the interest rates will pick but reduce when the supply for coins increases.
Currently, Coindex has a margin trading service called Dexmargin. The new lending service will provide leverage to users of the margin trading service. Therefore, the users of this exchange will not have any difficulty when they want to get loans. Furthermore, those with excess coins will have an opportunity to lend them to the website and earn interest.
According to Gupta, the new service is already in high demand. The CEO has revealed that during the beta testing phase, they only used USDT and BTC. With about 120 lenders, the website achieved a daily circulation of 170 BTC. Due to the growing demand for the service, the Crypto trading platform is planning to scale it up and add even more virtual currencies with time.
Other Exchanges Offering Similar Services
Coindex is not the only exchange with a lending program. In Japan, Bitbank exchange allows its users to borrow 1 to 25 BTC at an interest rate of up to 5 percent per annum. The exchange is planning to support MONA, XRP, LTC, ETH, and BCH in the future due to the high demand.
Coincheck, another Japanese exchange has a similar lending service for BTC. The website charges a maximum interest rate of 5 percent per year. Last year, GMO Coin, still in Japan, launched a lending program for XRP, LTC, ETH, BCH, and BTC.