Cryptocurrency exchange Zebpay announced Thursday that it has introduced the Matic token on its lending platform, where investors earn fixed deposit-like returns on their crypto holdings.
The service was launched last month where investors lend their coins to the exchange, on which they can earn returns, depending on the token and the period for which it is loaned. The exchange had started the installation with bitcoin (BTC), ether (ETH), tether (USDT) and dai (DAI). Binance Coin (BSC), which is the cryptocurrency issued by the Binance exchange, was added later.
Depending on the duration of deposits, users can generate an annualized return of up to 3% on bitcoin, up to 7% on ether, up to 7% on dai, up to 9% on Binance Coin and up to 12% on tether. Depositors will get a 6.5% return on their Matic holdings.
According to Zebpay, thanks to the lending platform, HODLers can earn passive returns in addition to those obtained from rising crypto prices.
The Zebpay loan facility is available in two options: open term and fixed term.
Under the open term, investors will not need to lock in their crypto and they will earn applicable returns for the day, with the returns being deposited into the investor’s trading book with the principal amount.
The fixed term allows investors to lend their crypto for periods of seven days, 30 days, 60 days and 90 days, with the rate of return varying for each. In this case, the tokens cannot be withdrawn before the end of the term.
Matic tokens, which is the native cryptocurrency of local crypto startup, Polygon, has jumped more than 7,000% since the start of the year.
In recent times, the demand for a Layer 2 scaling solution is attracting capital inflows, which in turn is fueling the rise in Matic tokens.
Polygon (formerly Matic Network) was co-founded in 2017 by three Indian software engineers: Jaynti Kanani, Sandeep Nailwal and Anurag Arjun.
The startup is the first well-structured and easy-to-use platform for Ethereum scaling and infrastructure development. The company aims to improve the usability and convenience of today’s decentralized ecosystem.
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