Crypto Lending Becomes Alternative Interest For Crypto Hodlers

By Achal Arya
Published October 9, 2020 Updated October 9, 2020
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Crypto Lending Becomes Alternative Interest For Crypto Hodlers

By Achal Arya
Published October 9, 2020 Updated October 9, 2020

Since its inception over a decade ago, cryptocurrencies like bitcoin have experienced quite a bit of a bumpy ride. The value of the first crypto, bitcoin, has gone from $0.06 in 2010 to just above $10,000 per bitcoin (BTC) in 2020. The exponential growth has evolved into the birth of other cryptocurrencies such as Ethereum (ETH) and Dai (DAI), to name a few. It also inspired many people to jump onto the crypto bandwagon to get their hands on as many bitcoin as possible. 

Individual investors and crypto enthusiasts are continuously looking for ways to grow their crypto assets. Many would hodl their bitcoin and wait when its value is appreciating in the near future before selling. Others look into alternative ways where they can see more productivity in their assets. As such, crypto lending is one of the alternatives for hodlers where they can lend their assets to margin traders while hodl-ing and get attractive interest in doing so. 

The emergence of crypto lending euphoria, several CeFi platforms have forayed closely mimicking the legacy institutions by enabling users to earn interest or get loans with cryptocurrencies as collateral. Despite the explosion of the DeFi sector, CeFi continues to enjoy high patronage.  

One of the platforms where hodlers can earn attractive interest easily is Hodlnaut. Started in April 2019 by two bitcoin maximalists Juntao Zhu and Simon Lee, the Singapore-based company has a mission to help individual investors to get the most out of their crypto assets without all the hassle. 


Hodlnaut helps hodlers to earn attractive interest

As a crypto lending platform, Hodlnaut allows users to deposit their bitcoin and other crypto assets and earn interest from it. The platform is able to offer attractive interest rates to users by lending it to margin traders in the crypto loans. 

The company is selective with who they loan the funds to and vigorously vetted the margin traders prior lending. Hodlnaut only lends to funds that have a mandate to borrow less than 1x their Net Asset Value. Besides lending to margin traders, Hodlnaut also lends out the asset to decentralized protocols and earns interest. 

Currently, the annual effective interest rates offered to users on the Interest Account at Hodlnaut are 6.2% for BTC, 6.7% for ETH, and 8.3% for DAI, USDC, and USDT. These rates take into account the compounding effect every week, paid out every Monday. Users automatically get the best interest rate based on market demand and the previous month’s earnings. 


Previously, Hodlnaut focused on supporting three major asset classes: Bitcoin, USDC, and USDT. However, they recently announced that they’re now supporting Ethereum and DAI on their platform. 

Hodlnaut’s Co-Founder and CEO Juntao Zhu, says:

We have decided to support new assets in our platform because there’s an increasing demand from both borrowers and lenders to support a more ethereum-based asset class.”

Is it safe to HODL with Hodlnaut?

Crypto lending platform, Hodlonaut requires all users to go through a Know-Your-Customer (KYC) verification process, following the regulation enacted by the Monetary Authority of Singapore (MOM).

The platform runs on secure Amazon Web Services (AWS) cloud infrastructure and SSL encrypted. It continuously encourages users to enable two-factor authentication (2FA) for all account transactions.

Taking into consideration the security concerns, the funds are held in custody with Hodlnaut using BitGo and no hot wallets. For more information, visit the FAQs page

In conclusion

Crypto lending is an emerging movement among crypto enthusiasts, where they can earn interest in their crypto quickly while keeping the ecosystem dynamic and evolving. With over 750 BTC in assets from 550 users, Hodlnaut is a crypto lending platform that’s dedicated help holders increase their assets’ productivity. The company is continuously looking to provide the best rates for its users while keeping the processes hassle-free. 

Sign up today for an Interest Account with Hodlnaut and start earning interest at a favorable rate!


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Achal Arya
519 Articles
I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]

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