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After a highly successful phase on launch of Binance Lending, the exchange has now announced the launch of a second phase with a few more digital assets added including BTC, ETH, and ADA.
The first phase was launched on Wednesday the 28th of August and allowed users access to lending three different digital currencies including Binance Coin (BNB), Ethereum Classic (ETC) and Tether (USDT). The second phase will give users the opportunity to lend a few more digital assets than the first. The company later announced on Twitter that within 10 minutes of the Phase 1 launch, all the limits for the three assets were maxed out.
According to the official announcement on the Binance website, the Phase II will support fixed terms of 14 and 28 days for the different digital assets. Subscription is slated to begin by 6 AM on Wednesday the 4th of September 2019 (UTC), and will run until 00:00 AM on Thursday the 5th of September 2019 (UTC). Binance also promises that interests on the loans will be immediately paid at maturity.
The announcement further states that apart from the original BNB, UTC, and USDT, there will also be access to Bitcoin (BTC), Ethereum (ETH) and Cardano’s ADA. Specifics for the new phase are as follows.
For USDT, users will have access to both 14 and 28-day maturity terms. For the former, access will only allow a total maximum of 20 million USDT with an individual cap of 1 million USDT at an annualized interest rate of 8%. For the 28-day term, the total maximum becomes 10,000,000 USDT with an individual maximum of 500,000 USDT at an interest rate of 8.25%
ETC is restricted to the 14-day term and does not have a 28-day option. Here, the maximum subscription cap sits at 20,000 ETC with an individual maximum of 1,000 ETC at a 7% annualized interest rate.
ADA also only has a 14-day term with a total subscription cup of 10 million ADA, individual cap of 500,000 ADA and a 6% interest rate.
Just like ETC and ADA, ETH also has no allowance for a 28-day term. It has a total subscription cap of 10,000 ETH, an individual cap of 100 ETH and also has a 6% annualized Interest rate.
BNB is the only asset restricted to the 28-day term and also has the highest interest rate at 10%. BNB will have a total subscription cap of 200,000 BNB with an individual cap of 100 BNB.
Bitcoin will have both 14 and 28-day terms, just like USDT. For the 14-day allowance, Bitcoin will have a total subscription maximum of 1,000 BTC and an individual cap of 10 BTC with a 3% annualized interest rate, the lowest so far. For the king coin’s 28-day term, the total maximum drops to only 500 BTC, the individual cap also drops to 5 BTC with an annualized rate of 3.25%.
The announcement further specifies interest amounts for each category and Binance gives an example of how it arrives at the various interest rates.
“If user A subscribes to 10 lots of BNB (28 days) Lending (total lend of 100 BNB), the interest earned at maturity date will be 0.076712 BNB * 10 = 0.76712 BNB.”
Binance Futures Testnet Platforms
As we reported recently, Binance has officially launched 2 testnet futures platforms, allowing its users decide which one will eventually be adopted for the full launch of its crypto futures service. The competition between “Futures A” and “Futures B” will allow users to cast votes and also trade with simulated USDT on each platform, giving participants a chance to earn a total of 10,000 BNB (about $226,000 at press time.)