An Indian Cryptocurrency exchange, Coindcx, has successfully launched a program permitting its users to earn interest on the cryptocurrencies that are held in their exchange. The Cryptocurrency lending program introduced by Coindcx is known by the name Dcxlend supports five cryptocurrencies viz., BTC, ETH, BNB, USDT and XRP. The monthly interest rate for the mentioned Cryptocurrencies as displayed on the website states:
- 2% interest rate for BTC
- 1% interest rate for USDT
- 1% interest rate for BNB
- 75% interest rate for XRP and
- 75% interest rate for ETH
As per the CEO of Coindcx, Sumit Gupta, the interest rate of BTC is highest as compare to the other Cryptocurrency is due to the fact that most of the traders carryout margin trading in BTC markets and they have high demand for the BTC lenders. The Cryptocurrency exchange also threw some light on the fact that there will be three lending term lengths like 7 days, 15 days and 30 days. The interest rate varies dynamically depending on the term lengths, demand and supply where the rate of interest goes up to 20% maximum. Coindcx also offers a different service termed as Dcxmargin. The CEO also stated that the cryptocurrencies that are lent through the Dcxlend will be consumed to provide leverage to the users on Dcxmargin. He has assured that in the near future he will be adding more variants of Cryptocurrency to the existing ones.
The Coindcx’s Dcxlend program runs on an internal internal settlement and liquidation mechanism for margin trading that does not possess a dedicated funding wallet. A similar program to Dcxlend also runs worldwide especially in the US from an exchange called Blockfi that introduced savings account while Japan’s BMO Coin launched a similar lending program.