If you’ve been holding XRP awaiting its potential surge, then you can earn more tokens while you do so. How’s that? Binance cryptocurrency exchange has announced the third phase of its lending program, which allows crypto enthusiasts to lend Ripple (XRP), Litecoin (LTC), Tether (USDT), and other crypto-assets for interest. The announcement was made in a blog post on September 9, 2019.
Binance Announces Upcoming Third Phase of Lending Products
According to Binance’s publication, the exchange will launch the third phase of Binance Lending Products on September 11, 2019, at 6:00 AM (UTC). In this phase, XRP and LTC are new members; however, users can choose among six tokens including XRP, LTC, USDT, BNB, ETC, and USDC to lend for interest. Also, the least and highest amount of tokens that can be lent, as well as, the interest for each asset has been fixed.
In the case of XRP, each user account will need to have an initial cap of 50,000 XRP. The total cap is 1,000,000 XRP, and the term to maturity is 14 days. Similarly, the annualized interest rate is 7%, while the interest per a lot size of 100 XRP is 0.268493 XRP. LTC also has a 7% annualized interest rate, and the interest per lot at maturity for 1 LTC is 0.002684 LTC.
BTC and ADA Dropped from the Third Phase
On the other hand, Binance Coin (BNB), Ethereum Classic (ETC), USDT, and USDC, which were in the second phase of the Binance Lending Products are still a part of the third phase. Bitcoin (BTC), and Cardano (ADA) which were in the second phase have been dropped from this stage. Also, Binance has fixed a 14 day maturity period for the loan on these assets instead of the 14-days and 28-days that were evident in the second phase.
According to Binance, the third phase’s subscription will be on a first-come-first-served basis and the subscription period will be between September 11, 2019, 6:00 AM (UTC) to September 12, 2019, 0:00 AM (UTC). The interest calculation period is between September 11, 2019, at 6:00 AM (UTC) to September 25, 2019, at 6:00 AM (UTC).
Community’s Opinion on Binance’s Lending Products
Comments made on Binance’s tweet about the lending program revealed users’ sentiment. Several crypto enthusiasts remarked that the interest for the 14 days is low and as such, is not an incentive for them to wake up so early to invest. Nonetheless, others were excited about the opportunity to invest and earn tokens.
On the other hand, locking up vast amounts of XRP for a specified period could impact on its price positively. The latter can be attributed to a lower supply of the asset circulating in the market, which could increase its demand, thereby influencing its price.