Changpeng Zhao: the possibility of passive crypto earnings

by in Cryptocurrency News

Binance margin trading

Changpeng Zhao, CEO of the largest Bitcoin exchange Binance, published a tweet about the possibility of passive cryptocurrency earnings.

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Followers of Zhao immediately began to express various versions of what would mean such a mysterious tweet.

Not without sarcasm.

Some suggested it would be staking.

Others that this may be lending to margin traders.

While many are wondering, Binance, meanwhile, has announced new trading pairs with the Tether stablecoin: DENT/USDT, MFT/USDT, KEY/USDT, STORM/USDT, DOCK/USDT, WAN/USDT, FUN/USDT, and CVC/USDT. Bidding in these pairs will start tomorrow, August 27.

The exchange also announced an increase in the financing rate from 0.02% to 0.04% for Ethereum Classic. A complete list of assets and financing rates available for margin trading can be found here.

Besides, Binance added a switch to the margin trading interface, which allows it to quickly borrow funds when opening new positions.

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UPDATE: According to the new entry on the exchange website, the Binance Lending service will be available on August 28 at 06:00 UTC and will be provided by subscription in a live queue. Initially, users will be able to borrow funds in USDT, Ethereum Classic, and Binance Coin.

The annual interest rate for the first product with a fixed maturity of 14 days is 15% for BNB, 10% for USDT and 7% for ETC. The subscription limit will be set at 200,000 BNB, 5 million USDT and 20,000 ETC. If all available limit is used up, the exchange will pay 1,150 BNB, 19,178 USDT, and 53 ETC as interest.

For example, if a user subscribes to 10 lots of BNB and thus provides 100 BNB, the interest payment in his case will be 0.057534 BNB x 10 0.57534 BNB.