Binance, one of the largest crypto exchanges out there, has recently started to expand its interest-bearing services. It will do so by adding support for USD Coin (USDC) and Elrond (ERD) to its Binance Savings service.
Adding Two New Coins
The individual maximum limits for both these coins have been set as follows: The maximum supported limit for ERD is set at 5,000,000, with Circle’s Stablecoin seeing a limit of 200,000,00 USDC. However, Binance has made it clear that it will adjust the maximum individual limits and interest rates on flexible deposits, doing so based on risk and market factors.
Binance Savings, formerly referred to as Binance Lending, is a savings product that allows Binance users to lend out their idle crypto on the platform to margin traders. This, in turn, will allow them to earn interest within it. The program itself consists of two parts. The first part allows a user to redeem their borrowed coins without the need for a long-term commitment, called Flexible savings. This will enable them to gain daily interest as long as margin traders are allowed to use their funds, in turn.
Partnerships Bearing Fruit
Binance had quite recently made a partnership with the developers of the Elrond blockchain network, which saw the BUSD be made available on the Elrond Network. Shortly after, Binance itself adopted the Elrond coin (ERD) into the blockchain.
Binance Labs had already been an early backer of the Elrond project. The investment firm had already led a funding round with NGC Ventures and Electric Capital, totaling in a round worth $3.25 million. With Binance hooking up to it, the previously-obscure blockchain network saw a large increase in traction as it launched its DEX.
A Brief History
It was back in August of 2019 when Bitcoin Savings first joined the list of offerings of the crypto exchange. It came in line with competition within the crypto lending field, seeing a massive influx of competition. At the other side of the spectrum, crypto borrowing has become a very popular product, as it allows coin holders to use their dormant assets and still earn a profit.
All registered users within the Binance exchange are eligible to borrow from it, covering a range of cryptocurrencies from USDT to BUSD. Binance Loans now supports an array of loan periods, as well, with interest calculated on a daily basis. This includes the usage of several cryptocurrencies as collateral, including that of ETH and BTC.