Indian cryptocurrency exchange, Coindcx, recently announced the launch of its crypto-lending program, Dcxlend. The program would allow users to earn interest on the cryptocurrencies held within the exchange.
The announcement stated that the program’s beta testing phase was over, and five cryptocurrencies are supported by the program, including Bitcoin [BTC], USD Tether [USDT], Ethereum [ETH], XRP and Binance Coin [BNB].
Sumit Gupta, the CEO of Coindcx, shared his thoughts with Bitcoin.com, and said that only BTC and USDT were supported during the beta phase. He said that the exchange had over 120 lenders, which led to the daily circulation of 170 BTC, over the testing period.
He also said that the exchange was still scaling up, and that the platform would add more crypto tokens soon.
The CEO further explained that the exchange had an internal settlement and liquidation mechanism for margin trading. However, it did not have a funding wallet.
“Funds are then lent to the users only when the margin trade is open, with no withdrawal access and hard liquidation with 7.5% maintenance margin.”
After the announcement, the exchange’s website was updated to show monthly interest rates. The rates were, 2 percent for BTC, 1 percent for USDT, 1 percent for BNB, 0.75 percent for XRP, and 0.75 percent for ETH.
Gupta added that BTC had the highest interest rates owing to the fact that most of the exchange’s traders did margin trading on BTC markets.
The lending term lengths associated with the program were 7 days, 15 days and 30 days. The interest rates would be subject to change, according to the market dynamics of “demand and supply.”
Moreover, the exchange announced that the cryptocurrencies lent via Dcxlend would also be used to provide leverage to users on Dcxmargin, another prominent service offered by the crypto exchange.
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