Binance has recently launched a new service called Binance Lending. Find out how it works and why it is the most rewarding way to HODL your crypto in the exchange.
At Binance, we constantly find ways for you to get opportunities to earn beyond trading. And the newest addition to this slate of opportunities is Binance Lending.
What is Binance Lending?
Binance Lending is a new feature on Binance that offers cryptocurrency lending products. With Binance Lending, you can now use the crypto you hold on your account for lending. In return, once the lending period for your chosen lending product is over, you will regain the crypto you put into the product, plus interest!
Binance Lending offers you a new avenue for growing your crypto portfolio beyond trading. This follows our recent launch of staking support on a wide range of cryptocurrencies.
How Binance Lending Works
With Binance Lending, storing, holding, and earning crypto at the same time is possible, with just a few clicks.
We are launching Binance Lending with products for BNB and USDT, with support for more tokens in the future. This means that Binance Lending will offer products where you can deposit your BNB or USDT, then retrieve your funds with interest after the designated subscription period. You can also borrow funds from Binance Margin to subscribe to Binance Lending.
Upon launch, Binance Lending users will be able to subscribe to a lending product on a first-come, first-served basis. Users will decide the amount of tokens they want to lend at the time of subscription. The designated hard cap is 500 BNB per account for BNB-denominated lending products. Meanwhile, the hard cap for USDT will be 1,000,000.
Once subscribed, the funds are stored on a time deposit with a 14-day period for the initial products. During this time, users will not be allowed to withdraw the funds they put into the lending product. Other upcoming lending products may offer other lending periods, so watch out for that.
For the first few lending products, the allowance, or the maximum amount of funds to be enrolled within each product, will be 200,000 BNB and 10,000,000 USDT.
What Do I Get From Binance Lending
The main benefit of using Binance Lending is the opportunity for passive gains with your crypto. Whether you’re a crypto HODLer trying to maximize gains or a frequent trader who wants to take a break from the action, Binance’s Lending products allow you to accrue interest & increase your token balance regardless of how the market moves.
For instance, you decided to take a break from trading during September, so you subscribe for a Binance Lending product using 500 BNB from your account. The annualized interest rate for the initial BNB lending product, which has an initial 14-day period, is set at 15%. This means that if you store 500 BNB for a year on the lending product, your BNB balance would grow 15%, or by 75 BNB, on a yearly basis. This translates to a gain of 2.875 BNB after just 14 days!
But that’s not the only advantage in store for Binance Lending. The BNB you put into Binance Lending products will also be counted under the daily calculation of BNB balances. This is particularly useful for participating in promos and Binance Launchpad token sales.
For instance, if you have 0 BNB in your spot account but subscribed to a Binance Lending product using 100 BNB, the BNB you have in the lending product will be counted within your daily BNB calculation. If you intend to participate in Binance Launchpad and meet all other requirements, you will still be entitled to 2 lottery tickets based on the most recent lottery rules. (Terms may vary for the succeeding Launchpad token sales. Please ensure that you have BNB in your spot account for use on token sales if you won the lottery.)
What’s Next for Binance Lending
We intend to continue enhancing and introducing new products to Binance Lending soon after launch. We will add more to the list of cryptocurrencies eligible for lending.
HODL and earn with us. Try Binance Lending on August 28 at 6:00 am UTC!