CoinMarketCap aims to democratize information related to interest rates, making it easy to find venues for earning and borrowing cryptoassets.
NEW YORK, OCT 17, 2019 – CoinMarketCap, the world’s most used cryptocurrency information resource for cryptoassets and crypto exchanges, is announcing an entirely new addition to their site today. The new product, Interest by CoinMarketCap, ranks the most popular platforms for depositing and borrowing cryptoassets according to their interest rates.
Interest by CoinMarketCap is launching with 33 cryptoassets. Each cryptoasset is listed together with wallets, exchanges and decentralized finance platforms that provide interest products on that cryptoasset. Users can find corresponding annualized interest rates, the minimum duration for a deposit before realizing returns, start times of deposit offerings, as well as a description of each platform and its offerings.
“We are excited by the growing interest (pun intended) globally in the uses of cryptocurrencies beyond trading or holding them,” said Carylyne Chan, Chief Strategy Officer of CoinMarketCap, “With this product, we hope to create a one-stop resource for users to find out where to save, earn, borrow and margin-trade with their cryptocurrencies.”
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 interest for borrowing. This demand for funds from borrowers creates the opportunity for users to gain interest 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. The platforms go on to loan the deposited cryptoassets to companies and users who may use it for margin trading, hedging, or as working capital.
Additionally, Interest by CoinMarketCap includes Decentralized Finance (DeFi) platforms, where the 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, CoinMarketCap hopes to provide more exposure to DeFi platforms and make it simple for users to keep an eye on changes in interest rates on various DeFi platforms.
Against a backdrop of crypto financial applications and increasing trading activity in derivatives, CoinMarketCap believes that this product will address the interest of its users for quick information about interest rates. CoinMarketCap will continue to add useful features and details, such as each platform’s insurance scheme, licensing, regulatory environment, and more.
CoinMarketCap will also be launching more new products at its inaugural conference, The Capital, in Singapore on November 12-13.
During embargo time, you may take an early look at Interest here: https://beta-rates.coinmarketcap.com
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