Stablecoin holders can earn 8.5% APY on USDC, USDT through Ledn Growth Accounts
Date: 2023-09-13 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
Crypto lending company Ledn announced on September 12 that its interest-bearing growth accounts now support both of the crypto market's leading stablecoins.
Ledn co-founder and chief marketing officer Mauricio Di Bartolomeo said:
We have accepted the industry's demand for a new way to generate revenue that is secure and transparent." Ledn stablecoin growth account in US$...Combine high returns, industry-leading transparency and smart risk management practices.”
By providing an expanded service, holders of USDC Circle and WST Tether will be able to receive up to 8.5% annual percentage yield (APY) on any stablecoin.
Ledn aims to correct the problems that have led to many competing crypto lending services becoming insolvent and bankrupt as early as mid-2022.
The firm will re-lend users' assets through its retail loan portfolio to generate income. In a move similar to previous efforts by other companies, Ledn announced that it will provide customers with transparent data on its activities through two features: the Open Book Report and a new client dashboard.
Describing its accounts as “legally ring-fenced” and protected, Ledn added: Clients will only be exposed to counterparties that represent their interests, and Growth Account assets will not be affected if Lend files for bankruptcy. Also, the Growth Accounts of one crypto asset will not be exposed to the risks associated with the Growth Accounts of another asset.
As a result, users will be able to switch between transaction accounts (with interest) and growth accounts without interest in order to gain maximum control over their funds.
Other percentage options are also available.
Some of the former leading lending services such as Celsius, BlockFi and Gemini Earn have failed. And now there are only a few other options available with the highest interest rates.
Bitcompare statistics show that Nexo provides a 12% reward on USDC loans, with Flynt offering 13.64% and Yield App 11%. And YouHolder puts forward 8 and 33 percent, respectively. The same site suggests that these services, with the exception of Flynt, offer similar rates for borrowed USDT. Some other lending services offer significantly lower interest rates.
Staking services that do not re-lend users' assets also provide lower interest rates on stablecoin assets. Coinbase announced a 5% interest rate on USDC on September 10th. Some exchanges offer similar staking features: Kraken, Crypto.com and Binance.
Availability is further limited by the fact that some services, including Ledn's personal interest growth accounts, are not available to users in the United States.
