Changpeng Zhao, CEO of the largest Bitcoin exchange Binance, published a tweet about the possibility of passive cryptocurrency earnings.
Followers of Zhao immediately began to express various versions of what would mean such a mysterious tweet.
Not without sarcasm.
ETH/BTC 100x shorts coming?— Udi Wertheimer (@udiWertheimer) August 26, 2019
Some suggested it would be staking.
Is it BNB stacking ?— sanatsuhane (@sanat_suhane) August 26, 2019
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.
The new #Binance Margin "Switch" function allows you to quickly borrow funds when opening new positions.— Binance (@binance) August 26, 2019
Switch freely between asset mode (normal orders) & margin mode (margin orders)
E.g. While holding 5 BNB in a Margin account, you can sell max 15 BNBhttps://t.co/YuufPADewOpic.twitter.com/ZQa5KNdbB8
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.