ZebPay, one of the largest cryptocurrency exchanges in India, on Thursday said it would be launching a lending platform on which crypto investors would be able to lend their coins to the company to earn fixed passive returns. This will be on top of any capital appreciation.
On launch, the lending feature will support Bitcoin (BTC), Ethereum (ETH), Tether (USDT) and Dai (DAI). Depending on the term of deposit, users will be able to generate returns of up to 3 per cent on BTC, up to 7 per cent on ETH and DAI, and up to 12 per cent on USDT.
The company said investors can lend their cryptos for an open term or a fixed term on the ZebPay Lending Platform. Under the open term, investors will not need to lock in their crypto under the deposit scheme and will earn returns as applicable for the day, and the same will be deposited in the investor’s trading wallet along with the principal amount.
The fixed term allows investors to lend their cryptos for 7 days, 30 days, 60 days and 90 days, with the rate of return varying for each tenure. In this case also, tokens cannot be withdrawn before the end of the term. In the case the investor chooses to withdraw early, a small penalty will be levied.
“ZebPay has always encouraged investors to hold on to their cryptos for the long term in order to benefit from the best possible returns. Through the ZebPay Lending Platform HODLers, as we call them, one can earn passive returns on top of those gained from a rise in crypto prices. The crypto holdings of ZebPay customers are essentially going to do the work for them as investors earn passive income with ease,” said Avinash Shekhar, Co-CEO, ZebPay.
Cryptocurrencies have been all the rage in recent one-and-a-half year, as prices of all the major coins have surged exponentially. They have emerged as the best investment class today, amid a wider acceptance among the investment community.