What is Binance Lending? BNB Lending Tips And Detailed Reviews

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2021-03-23 18:45:35

Recently, when the storm swept and made copper worth Binance Coin (BNB) Gradually decreasing month by month shows a slowdown in employment IEO investment, then CZ focused on launching a new segment that is Binance Lending. So what is its mechanism, let’s go CHK Check out some highlights.

What Is Binance Lending

What is Binance Lending?

What is Binance lending

This is the definition we get when we access the lending site from Binance, understand today Binance Lending is we lend electronic money (Currently launching 3 dong BNB, USDT and ETC), and we will receive the annual interest paid by Binance (the corresponding interest on the above is 15%, 10% and 7%).

Just like the models Staking or saving at traditional banks, it’s just that we use Crypto. So should we choose and invest here or not, before going in, let’s try to learn and analyze about Binance Lending first.

The Reason For The Birth Of Binance Lending?

(This is only my own analysis and prediction, not anyone else, you should only refer, not consider it absolute)

A few months ago, I read a research paper by Binance Research showing that Lending is an inevitable trend in the industry cryptocurrency, in the Lending image evaluation table accounts for a very small proportion and I remember y that back then there were not many lending services, only when the trend Staking and Cloud Wallet appears, the fact that there are too many people depositing coins on their wallets, holding coins on the floor, leading to too many cryptocurrencies lying still, from which exchange owners, wallet owners find ways to optimize that to benefit Maybe that is one of the reasons Binance Lending was born.

With Binance Lending, in the immediate future, only lending BNB, USDT, ETC, I think there are quite a few brothers holding these 3 coins on Binance. Therefore, there are only 3 coins in the immediate future, but the future will open a lot of other coins.

With Staking projects, not everyone can spend a large amount of money to invest, why do many people know the knowledge to make a pool, then put the coin in to staking to receive interest somewhere about 8-10% /Year. So I think this is a form of improvement that can either be called the evolution of Staking or maybe the inherent combination of Lending with the Staking trend. There is also another investment method that you should pay attention to instead of traditional savings or just hold coins and leave it there.

Details on Binance Lending

According to the latest announcement from Binance, In the early stages, loan products BNB, USDT and ETC have a loan term of 14 days, as follows:

  • Annual interest rates: BNB (15%), USDT (10%), ETC (7%).
  • Registration period: From 2019/08/28 6:00 AM (UTC) to 2019/08/29 0:00 AM (UTC).
  • Maturity date: 14 days.
  • Interest calculation period: From 2019/08/29 0:00 AM (UTC) to 2019/09/10 23:59 PM (UTC).
  • Interest payment term: Right after the loan term is due.
  • Registration form: First come first served.

It can be said that this is the first testing for investors and for Binance, I do not know how effective it is, so I do not dare to confirm.

Binance Lending

An IMPORTANT NOTE to know: For those of you interested in Binance LaunchPad and Lending, there is no need to worry. The daily balance is still charged with the BNB you lending, so if you have 500BNB and lending 300BNB, then it will still have 10 tickets to participate in LaunchPad.

Binance Lending Pros and Cons Review

Advantages

  • Helping investors optimize their coin holdings (suitable for those with long-term hold intentions)
  • Both lending and launching to Launchpad are worth a look.
  • Helping individuals participating in lending, borrowing and lending can all achieve the purpose (this depends on the case, bad or good, depending on the market at that time).
  • Simple, easy to use, easy to use.

Defect

  • Risk of Great Variation: Not sure that 10% is delicious. You should know that cryptocurrencies are extremely risky investments with very high volatility margins. Maybe in a month can fly 30%, you can borrow 15% interest / year is not sure if it is a year of downtrend.
  • Exchange Risk, USDT Collapse: Even if you use USDT to lend, it is very likely that USDT will collapse, Binance sponsored by the surface but who knows, everyone will worry at that time.
  • Of course it’s like saving: you won’t be able to withdraw when you make a loan, or lose that interest when you need money urgently.

Epilogue

Basically, this is a form of investment that you should carefully consider, it will be beneficial, will be harmful depending on your ability to judge the situation, the advantages and disadvantages we mentioned. detailed analysis.

Any exchange is trying to build an ecosystem for them, including Binance, because they want to retain their users, thinking this is a product in an inevitable trend to help investors. BNB loyalty earns more coins (coin value increases or decreases are not clear). Please consider and decide, wish you success. Please pay attention to the news on the forum invest Please

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