Interest by CoinMarketCap: Compare where you can earn and borrow crypto

Key takeaways:

  • Interest by CoinMarketCap is one-stop resource for users to find out where to save, earn, borrow and margin-trade with their crypto-assets (i.e. coins and tokens) – all in one place.
  • We are starting with 33 cryptoassets including Bitcoin, Ethereum, Litcoin, and will continue to add more.
  • Key information include lending and borrowing platforms (such as wallets, exchanges and DeFi), annualized interest rates, minimum duration for deposit before realizing returns and start times of deposit offerings.

As the cryptocurrency space develops, the services in the industry have evolved as well. At CoinMarketCap, we strive to provide the most useful and up-to-date information in the crypto space, and today, that includes showing you the best platforms for you to deposit cryptoassets and generating yield from them.

This new product, Interest by CoinMarketCap, ranks the most popular platforms for depositing and borrowing cryptoassets according to their interest rates.

We are starting with 33 cryptoassets. For each, you will see a list of platforms (mainly consisting of wallets, exchanges and decentralized finance platforms) with their corresponding information such as annualized interest rates, minimum duration for deposit before realizing returns, start times of deposit offerings. To make it things easier, we also included a brief description of each platform and its offerings.

Overview of the product Interest by CoinMarketCap

Key terms to take note of when using Interest

Interest by CoinMarketCap is sorted by cryptoassets, as ranked on CoinMarketCap. The different cryptoassets are listed on the left side of the page, and clicking on each cryptoasset opens up the list of the platforms where you can save or borrow that asset.

The definition of the different terms we used are as follows:

Earn Interest: This tab shows you the platforms where you can deposit the selected cryptoasset and generate yield.

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.

Platform: List of the names of the platform that is operating the service. Clicking here links you directly to their site.

Category: We have classified these platforms into 3 main categories

a)    Wallet – centralized platform which allows you to deposit cryptoassets and earn yield. Some of these platforms also allow you to take a loan against the cryptoassets you deposited.

b)    Exchange – centralized exchange which allows you to deposit cryptoassets and earn yield. Yield is usually generated from other traders borrowing your asset to perform a short-sell.

c)    DeFi – decentralized platform which allows you to deposit your cryptoasset 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 that you need to deposit your asset before realizing the returns. Before the duration expires, you are usually unable to withdraw your asset.

Start Time: Some platforms run their deposit offerings in batches (e.g. Binance). Do take note of the start date before it is fully subscribed!

Annual Interest Rate: This shows the annualized interest rate that you would receive/pay for your cryptoasset. If you were to deposit the asset for 1 year, you would receive the corresponding growth of the asset as stated. Do take note that the Annual Interest Rate may fluctuate, especially for DeFi platforms. Check back often to ensure you are getting the best interest rates for your assets!

Additional Context: How It Works in Traditional Finance Versus in Cryptocurrency

In traditional finance, users deposit their money into banks in exchange for earning interest, and the banks in turn loan the funds to others and charge an interest for borrowing. This demand for funds from borrowers creates the opportunity for users to gain interest by using the assets they own. 

Likewise, in the cryptocurrency industry, there has been a rise of platforms that allow users to deposit their cryptoassets for a fixed period of time. At the same time these platforms go on to loan the deposited cryptoassets to companies and users who have uses in margin trading, hedging, or as working capital.

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. This alleviates the centralized concerns around other platforms, but has the drawback of volatility in its interest rates. With the Interest product, we hope to provide more exposure to DeFi platforms, and make it simple for users to keep an eye on changes in interest rates on DeFi platforms.

Against a backdrop of crypto financial applications and increasing trading activity in derivatives, we believe that this product will address the interest of its users for quick information about interest rates. We will continue to add on useful features, such as each platform’s insurance scheme, licensing, regulatory environment, and more.

More Products to Be Launched at Upcoming Conference 

CoinMarketCap will also be launching more new products at  its inaugural conference, The Capital, in Singapore on November 12-13. Be sure to get your tickets if you have yet to do so!

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