ZebPay sets up crypto-lending feature on its app

Mumbai: ZebPay has set up a crypto-lending platform that will allow users to lend their coins to the cryptocurrency exchange.

In the initial phase, the platform will accept limited tokens from users. Depending on the term of deposit, users can generate returns up to 3% on their Bitcoin, up to 7% on Ethereum and Dai and up to 12% on Tether.

ZebPay, which also operates exchanges in Australia and Singapore, is calling the crypto lending platform “a passive income by adding on to the returns gained from rise in crypto prices.”

Top cryptocurrencies, such as bitcoin and ethereum, have had a volatile month so far, with prices plunging nearly 30% each in the last fortnight, according to an analysis of data from crypto price tracker Coinsmarketcap.com. This, after China expanded its crypto ban to include financial institutions and cracked down on crypto miners in the country.

While bitcoin is largely a peer-to-peer online currency, ethereum is often used as a layer for other
cryptocurrencies, as well as for the execution of decentralised
smart contracts, Tether is a stable coin that pegs to the US dollar, and is issued by a Hong Kong-based company Tether. Dai is an Ethereum-based stable-price cryptocurrency, like Tether.

“ZebPay has always encouraged investors to hold on to their crypto for the long-term in order to benefit from the best possible returns,” said Avinash Shekhar, co-chief executive officer of the cryptocurrency exchange. “The crypto holdings of ZebPay customers are essentially going to do the work for them as the investors earn passive income with ease.”

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With Zebpay’s crypto-lending platform, investors can lend for open-term or a fixed-term plan.

  • Under the open-term, investors will not need to lock in their crypto and will earn returns as applicable for the day. The returns will be deposited in the investor’s trading wallet along with the principal amount.
  • The fixed-term plan will allow investors to lend their crypto for seven-day, 30-day, 60-day and 90-day periods, with the rate of return varying for each. Tokens cannot be withdrawn before the end of the term. In case the investor chooses to withdraw early, a small penalty will be applicable.

The lending option has already been launched on the revamped version of the existing ZebPay app. Once users update the app to the latest version, the lending option will automatically show up.



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