ZebPay, India’s oldest and most widely-used Bitcoin and crypto asset exchange, on Thursday announced the launch of the ZebPay Lending Platform, a first-of-its-kind crypto lending model in India.
This new offering from ZebPay 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. The ZebPay Lending Platform 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., a company release said.
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 pc on their Bitcoin (BTC), up to 7 pc on Ethereum (ETH), and Dai (DaI), and up to 12 pc on Tether (USDT).
Investors can lend their crypto for an open term or a fixed term with the ZebPay Lending Platform. Under the open term, 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. 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. In this case, tokens cannot be withdrawn before the end of the term.
In case the investor chooses to withdraw early, a small penalty will be applied. Upon maturity, the returns earned will be deposited in an investor’s trading wallet along with the principal amount. The returns offered on the ZebPay Lending Platform will be calculated directly based on the amount of crypto an investor holds.
Avinash Shekhar, Co-CEO, ZebPay, said, “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 HODLers, 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.”
“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.
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, the release added.