Bybit, a cryptocurrency exchange with headquarters in Dubai, has added crypto financing services to its menu of offerings.
Users are able to do this with their idle cryptocurrency holdings to earn passive interest money Users can deposit their unused cryptocurrency into asset pools that are lent out to borrowers, with the lenders earning hourly interest payments of up to 16.46%, according to a May 2 release.
Although the exchange has promised to make Bybit Lending available on their website soon, it is currently only available on versions of the Bybit app that are 4.16.0 and higher.
To protect lenders’ investments, platform users who wish to borrow money must deposit collateral assets equal to or greater than the loan amount. According to Ben Zhou, co-founder and CEO of Bybit, the platform aims to give users a chance to make money while giving seasoned traders access to funding from lenders so they may take use of the exchange’s more sophisticated trading possibilities.
With a few restrictions, Bybit lending enables customers to deposit and redeem their cryptocurrency assets whenever they choose. For the various cryptocurrencies accepted on the site, there are required minimum deposits, such as 0.03 Bitcoin (BTC) and 0.05 Ethereum (ETH).
Given that the loan-to-pool ratio for the service is below 100% and the user has not surpassed their daily redemption cap, funds can be redeemed with ease.
In such circumstances, the lender may redeem its assets as soon as space becomes available, or if the daily redemption limit has been reached, it may postpone redemption until the following day.
The most recent cryptocurrency exchange to offer financing services is Bybit. 2019 saw the launch of lending services by Binance, which offers a variety of ways for consumers to earn interest on deposited cryptocurrency holdings.
While OKX does not provide direct lending services, it does enable users to borrow money against deposited tokens through its loan facility. KuCoin also provides lending services for a variety of tokens.
