Cryptocurrency exchange Binance is expanding its Binance Savings service with two new coins- USDC and Elrond (ERD). The coins will now be a part of the platform’s interest-bearing product.
New coins added
The exchange has defined the maximum limit for the USDC- a stablecoin by Circle to 200,000,000 coins. For Elrond, the limit would be 5,000,000 ERD. Binance said that it will adjust the interest rates and maximum limits for individuals on flexible deposits depending on risk and other market factors.
Binance Savings was formerly known as Binance Lending. It is a savings product that allows users to lend their digital assets to margin traders. They receive interest in return. The program consists of Flexible Savings which allows users to lend their coins without making a long-term commitment. This helps them earn daily interest on the funds being used by margin traders.
New partnership with Elrond
Binance has recently signed a partnership with Elrond developer. It made the Binance stablecoin BUSD available on the Elrond Network. The exchange has been an early backer of the network, leading a $3.25 million fundraise alongside NGC Ventures and Electric Capital. The project didn’t get much hype before Binance jumped by its side.
For Binance, the addition of USDC and ERD helps in expanding its interest-bearing service offerings. The company announced this service in August 2019, right when the crypto lending space was beginning to gain ground. Crypto users now find more value in lending their assets to traders instead of letting them sit idle. This helps them create a second source of income as well.
All registered users on Binance are eligible to borrow using Binance Loans, which offers a variety of loan repayment periods. Interest rates are calculated on a daily basis. Bitcoin, Ether, and other coins could be put down as collateral for getting these loans. The coins lent here ae used in leverage crypto borrowing business available on Binance.com where users can get margin trading services.
The loan terms can vary between 7 and 90 days, with three days of overdue duration carrying 3x the regular interest. People who fail to pay their loans will get their collaterals liquidated to pay the debts.
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