The cryptocurrency market is offering a wide range of solutions for users to earn interest on their funds. However, many of these services are very complicated to do; some are not regulated, while others require large deposits from users.
Hodlnaut is one of the most advanced and easiest ways to earn interest on your Bitcoin (BTC), USD Coin (USDC), or Tether (USDT). After receiving support from several VC companies recently, Hodlnaut aims at becoming a leader in the crypto lending market.
Hodlnaut is a company that is currently offering investors and crypto enthusiasts the possibility to earn interest on their cryptocurrencies. As we mentioned before, the site is offering support to three large digital assets: BTC, USDC and USDT. In the future, new coins can be added according to the demand in the market.
Hodlnaut was founded in April 2019, operating as a portfolio company of Antler, a recognized global VC firm working with early-stage startups. Since being released to the market, the company attracted more than 750 BTC in funds, which shows considerable interest in the services they are currently offering.
Since the company launched its services last year, more than 500 users registered on the platform, as Hodlnaut continues to expand in different countries and regions, the user base is expected to grow as well.
The term Hodlnaut is a combination of the words “hodl” and astronaut. For users that do not know, the word “hodl” is a misspelling of the word “hold” used by enthusiasts in the cryptocurrency market to describe long-term holding strategies.
The company is going to make it very easy for you to earn interest on your crypto funds. Some investors prefer to trade digital assets in the crypto market, while others consider it is better to hold for the long term.
These long term holders – or hodlers – can potentiate their holding strategy by lending their funds to other users that perform trading activities. When there is an increase in the crypto market volatility, and most of the digital currencies are headed towards the same direction, margin traders start opening long or short positions.
Due to this reason, the crypto borrowing needs increase, allowing lenders to provide their funds for margin traders to adequately long or short an asset. Margin traders trade with borrowed funds to achieve more significant profits in the market and use a small portion of their funds as collateral.
This is why Hodlnaut is offering its services to bridge the gap in the market between lenders and borrowers. All the participants involved in the cycle are going to be benefited from the solutions provided by Hodlnaut.
Users that want to borrow funds will get an attractive rate to fund their open long or short positions. Borrowers will receive juicy rewards on their coins as soon as they deposit the funds on the platform. Meanwhile, Hodlnaut gets a premium for working as an intermediary between these two market participants.
The current interest rate on BTC deposits at Hodlnaut is 6% (effectively 6.2% annually). USDC and USDT deposits are also paying 8.3% at the time of writing. These refer to annual interest rates that take into account the compounding effect every single month.
Of course, these rates can change according to market conditions, including supply and demand from lenders and borrowers. At the same time, the platform is going to be adding withdrawal fees for users. These are regularly adjusted according to blockchain conditions.
The minimum withdrawal fee for Bitcoin will be 0.0005 BTC, while for Tether and USD Coin is three coins, respectively ($3). This is similar to the fee scheme implemented by other platforms and companies in the market offering similar services to Hodlnaut.
The rates offered by Hodlnaut are certainly among the most attractive in the industry. Some exchanges are currently offering similar services with meager interest rates (even close to 0%). Thus, Hodlnaut is expected to become a fast-growing company in the market with favorable interest rates for users’ funds.
In terms of security, the platform is working with a secure cloud infrastructure on AWS, and all the traffic on the site is encrypted with SSL encryption. Furthermore, the firm informs that they are encrypting as much data as possible to reduce information leaks.
Interested users can also enable the two-factor authentication for their accounts, which became a standard for the industry.
During the last years, many attacks took place in the market, affecting a large number of companies and users. This is why having a secure platform will make a difference for individuals who want to be sure their funds will be safe. The company has also informed it is not using hot wallets, and they operate only with cold wallets. In addition to it, they are currently lending the funds only to stable institutions and partners with sound financial health.
Regulations and Recognition
Being a crypto and blockchain participant is not an easy thing to do. Services providers must follow regulations that change across borders, and they must be compliant with the requirements governments establish.
Hodlnaut is currently undergoing a MAS (Monetary Authority of Singapore) License application in Singapore. This would provide the company with clear legal support to expand its operations once Singapore’s regulatory authority approves the license.
The country has been at the forefront of the crypto and blockchain markets in terms of regulations. The government has been very opening towards crypto firms, and it has been providing licenses to some of the most recognized companies currently operating in the market.
In addition to it, it has been recognized as a certified Fintech by the Singapore Fintech Association, which is a recognized credential provided by the regulatory authority in the country. Moreover, the Infocomm Media Development Authority (IMDA) of Singapore has selected Hodlnaut as a recognized blockchain company.
These recognitions show that the firm follows the legal requirements imposed by Singapore to be a regulated and secure company offering high-quality services to crypto and blockchain users.
Some of the company partners and investors include The Singapore Management University, Three Arrows Capital, BitGo, Sparrow, and many others.
Hodlnaut is a company that allows users to deposit their cryptocurrencies and earn interest on their funds monthly. Individuals will be able to get attractive interest rates on their BTC, USDC, and USDT coins.
Companies and other firms could start borrowing funds from Hodlnaut to provide funds to traders that trade with margin. The services offered by the firm are certainly making a difference in the crypto market.