India’s oldest and most widely-used Bitcoin and crypto asset exchange ZebPay on May 27 announced the launch of the ZebPay Lending Platform. It would be country's first of its kind crypto lending model.
This new platform allows users to lend their coins to ZebPay, on which they earn returns depending on the coin and the time period it is loaned for. It generates returns on users’ crypto investments if they lend select cryptos thus, providing an opportunity to earn a passive income by adding on to the returns gained from rise in crypto prices, claims ZebPay.
Following the launch, ZebPay would Lending Platform would support Bitcoin (BTC), Ethereum (ETH), Tether (USDT) and Dai (DAI). The users will be able to generate returns of upto 3 percent on their Bitcoin (BTC), upto 7 percent on Ethereum (ETH) and Dai (DaI) and up to 12 percent on Tether (USDT), however it will depend on the term of deposit.
New SEC chief raises questions over investor protection with SPACs and Cryptocurrency
"ZebPay has always encouraged investors to hold on to their crypto for the long-term in order to benefit from the best possible returns. Through the ZebPay Lending Platform holders, as we call them, 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 the investors earn passive income with ease,” ZebPay Co-CEO Avinash Shekhar said.
"“We have always believed that crypto will enable a multi-fold increase to investors’ wealth. With the launch of the ZebPay Lending Platform, we want to give users the opportunity to grow their investments further, by making their existing crypto holdings do all the work.” Avinash added.
Investors will not need to lock-in their crypto under the open term deposit and will earn returns as applicable for the day, with the returns being deposited in the investor’s trading wallet along with the principal amount under the open term. The fixed term allows investors to lend their crypto for 7-day, 30-day, 60-day and 90-day periods, with the rate of return varying for each. So the tokens can't be withdrawn before the term's end.
When matured, the returns earned will be deposited in an investor’s trading wallet along with the principal amount. Based on the amount of crypto an investor holds, the returns offered on the platform will be calculated directly.
The new lending option has already been launched on the revamped version of the existing ZebPay app. User just need to update to the latest version and the lending option will automatically show up.