CoinMarketCap, a leading website that tracks most of the alternative coins that has hit the market has recently presented its own interest product. “Interest by CoinMarketCap” is one-stop resource for users to find out where to save, earn, borrow and margin-trade with their crypto-assets in a unique place. The product will begin with 33 cryptoassets including Bitcoin, Ethereum, Litcoin and include more later.
Product featuresEarn Interest:
This tab show where you can deposit the selected cryptoasset and generate yield after.Borrow Crypto:
This tab shows you the platforms where you can borrow the selected cryptoasset, paying the interest. As some platforms are exchanges, this allows you to borrow the asset and short sell. In other cases, the platforms are wallets, which allow you to loan the cryptoasset and use it outside of the platform. Do note that most require you to have collateral deposited before they allow you to withdraw anything.Platform:
List of the names of the platform operating the service with direct links to their site.Categories:
a) Wallet – a centralized platform which allows to deposit cryptoassets and earn yield. Some of these platforms also allow to take a loan against the previously deposited assets.
b) Exchange – a centralized exchange which allows to deposit cryptoassets and earn yield. Yield is usually generated from other traders borrowing the asset to perform a short sell.
c) DeFi – a decentralized platform which allows to deposit cryptoassets into a pool for others to borrow. Thus, the yield is generated by others borrowing from the pool, and interest rates are usually determined by the supply and demand of the cryptoasset.
Duration: Some platforms have a minimum duration before depositing any asset. Until, the duration expires, it’s usually impossible to withdraw the asset.
Start Time: Some platforms run their deposit offerings in batches.Annual Interest Rate:
A tab showing annual interest rate regarding the different assets.
Additionally, Interest by CoinMarketCap includes Decentralized Finance (DeFi) platforms.
DeFi platforms have no direct control over the assets deposited or loaned, and operates everything via smart contracts on the blockchain , offering a complete security. This alleviates the centralized concerns around other platforms but has the drawback of volatility in its interest rates. With the Interest product, Coinmarketcap wishes to provide more exposure to DeFi platforms, and make it simple for users to keep an eye on changes in interest rates.
CoinMarketCap will also be adding more features to the interest product and plans to launch more new products at its inaugural conference, The Capital, in Singapore on November 12-13.
More information at https://blog.coinmarketcap.com