Binance is launching their fifth phase of their cryptocurrency lending products on September 20th 2019 6:00 AM (UTC) and will be including Dash in this launch with 14 day fixed terms, as well as margin trading options.
Do you think privacy is a fundamental right? https://t.co/TZaVT5Uis4
— CZ Binance (@cz_binance) September 17, 2019
Announced earlier this week, individuals will be able to lend out Dash on a subscription term that will last from September 20th 2019 6:00 AM (UTC) to September 21st 2019 0:00 AM (UTC) and will only amount to 30,000 Dash in total with a cap of 300 Dash per individual. The annualized interest rate will be 3.5% with the interest per lot (1 Dash) at maturity being 0.001342 Dash and the interest payout time coming immediately after the loan term matures. Dash will be joining BTC, ETC, XRP, BNB, ETH, ZEC, USDT, USDC, LTC, XMR, and ADA as possible coins to be lent on Binance. Most coins have a 14 day term and varying interest rates, but BTC does have a 28 day term option.
Additionally, Binance announced this week the addition of margin trading options for both Dash and Zcash. This includes trading pairs for both coins against BTC and USDT.
Returning the market to competitive interest rates
The ability to lend and borrow Dash on Binance helps increase the liquidity of Dash on the borrowing side and increases the potential rewards for those that have larger holdings of Dash on the savings side. This brings Dash closer to being able to offer what the legacy financial ecosystem delivers, and even starts to exceed it since the best savings rates at banks max out around the 1%-2% range and many are less than 1%.
— Binance (@binance) September 18, 2019
These rates better help reflect the actual market supply and demand for borrowing money and will be able to adjust quicker due to their relatively sort terms of two weeks. This provides a better alternative to the artificially low rates in most current fiat markets. Cryptocurrency lending is still in its infancy, but it does help individuals get extra returns and get liquidity to make short-term payments to those individuals/industries that currently do not accept cryptocurrency. However, it has a long way to go before it even gets close to the fiat personal loan market level of $138 billion.
Dash gaining more lending integrators
Binance is not the first exchange to integrate Dash into their cryptocurrency lending platform nor to offer users a competitive return since both YouHodler and Celsius integrated Dash earlier this year. Notably, Celsius started with Dash at 7.25%, much higher than Bianance’s introductory 3.5%. However, SALT has appeared to be the most popular lending and borrowing option, so far, with them integrating Dash earlier this year in April and only a few months later saying that Dash became their second most popular collateral option. Uniquely, SALT allows users to post a Dash masternode as collateral while still maintaining control of that masternode’s voting and rewards, which technically enables individuals to more easily acquire a masternode since individuals can borrow the money to get a masternode and then post it as collateral and use the monthly block rewards towards paying off the SALT loan. As cryptocurrency’s financial ecosystem develops even further and becomes more robust, individuals will have even less reasons to use the old financial system.