[파커] Can I get interest as much as my salary on the exchange? (Overseas)

[출처: 셔터스톡]

[파커’s Crypto Story] In the last column, we introduced financial services of domestic exchanges excluding trading. Although the interest rate varies by service, the most popular domestic deposit products of Bitcoin and Ethereum were about 7%. Then, what kind of financial services are operated by overseas exchanges following the domestic one?

#Binance offers the most diverse cryptocurrency financial services

The disadvantage is that foreign exchanges have an entry barrier compared to domestic exchanges. Nevertheless, experienced cryptocurrency investors often use foreign exchange services. This is because more liquidity and a variety of financial services are provided.

Binance, a global cryptocurrency exchange, is well known for providing the widest variety of cryptocurrency financial services. First, the deposit service is divided into free deposit, fixed deposit, and active deposit. Free deposits are free to deposit and withdraw, but have a lower interest rate. Bitcoin free deposit is 1.2%, BUSD 6.0%, USDT 6.0%, and Euro 3.21%, which is at a level that is not significantly different from the institutional fiat deposit rate. On the other hand, the fixed deposit has a fixed term option of 7 days, 14 days, 30 days and 90 days. As the period increases, the interest rate increases. Binance offers fixed deposit products for USDT, BUSD, and USDC with interest rates ranging from 5% to 6%. Lastly, active deposits are a method of operating the deposit system when the recruitment amount for a specific coin is filled, like GoPax’s GoPi. The difference is that a wider variety of coins are being offered at high interest rates. The interest rate differs for each coin project, but averages 10%.

Various staking and swap services are also one of Binance’s products. Staking is classified into Ethereum 2.0 staking, DeFi staking, and fixed staking. The purpose is to provide easier staking to customers like domestic exchanges. For swap service, there is liquid swap. Liquid swap is a service that provides liquidity for transactions between specific coins. Although the rate of return is high, there is a disadvantage that the principal is not guaranteed and the risk is high. The concept is similar to Uniswap, which does not use the quotation and trading method.

In addition, Binance offers services such as BNB Vault, Double Deposit, and Lunch Pool. BNB Vault can be viewed as a service that increases your earnings potential by integrating various Binance products. By depositing BNB on the BNB Vault service, you will be able to earn new tokens, BNB free deposit income, and DeFi staking income from the launch pool. For example, if a user deposits 100 BNB in ​​the Vault, they can receive BNB free deposit spot income according to the 100 BNB quota, lunch pool rewards Shin-Q token, DeFi staking, and BSC (Binance Smart Chain) on-chain mining. There is. On the other hand, double deposit (dual investment) is a service that distributes the profits earned through option trading to customers. Since the interest source is option trading, it has a high-risk high-return character. If you think the cryptocurrency price will rise within a certain period, you can buy the USDT investment product, and if you expect it to fall within the period, you can buy the BTC investment product. The concept itself is similar to Bithumb’s lending service, but it is fundamentally different in that it is based on option trading.

#Bitfinex, a leader in traditional lending services

Another overseas exchange Bitfinex also provides basic staking services. However, most users use Bitfinex for lending services.

Bitfinex Lending is the most suitable service for the image of cryptocurrency P2P loans. It is literally a structure where individuals who participate in Bitfinex lending directly exchange loans. The service is provided as if the borrower buys the interest rate raised by the loan provider by providing the interest rate in a bid-to-price manner. Bitfinex charges a 15% commission on this P2P loan and brokers transactions between individuals. It also features USD loans that are not USDT. However, in order to withdraw USD, you must pass the intensive KYC (Customer Verification System).

Exchange loan demand mostly comes from customers who use margin services and the like. In this process, there may be concerns about the’spoilage’ of borrowers. If the customer who made a loan makes a margin with the money and then blows all the margin, it will be in a situation where they cannot pay it even if they want to pay it back. However, with Bitfinex’s intervention, it is designed to forcibly liquidate the rest of the margin, excluding loans. In addition, Bitfinex has a system to compensate if a situation where it is impossible to repay a loan due to an exchange accident.

Of course, for investors, “how much interest income is the Bitfinex loan provider?” This depends on the loan order book situation from time to time. However, in the same chapter these days, it is said that on average of 100 million dollars deposits (Bitfinex is settled with interest once a day) on average. This is because the more the market is booming, the higher the demand for loans, the higher the interest rate. In this way, another monthly salary is created with interest income on a deposit of 100 million won.

#FTX, attracting attention with token service, introduces loan service with hourly compensation

FTX, which has attracted attention with the tokenization service of institutional assets such as stocks and the US presidential election prediction market event, is one of the emerging overseas exchanges. FTX also offers staking and loan services. Staking is designed in a structure in which you can receive various benefits by staking FTT, an exchange coin of FTX. Depending on the amount of deposit, benefits such as referral rebate, transaction fee reduction, voting rights, and additional airdrops increase.

In the case of loan service, the concept of cryptocurrency P2P loan is the same as Bitfinex, but it is not an order book format. FTX applies the interest rate set by the exchange to the loan provider in bulk. So, it is relatively stable, unlike Bitfinex, where the interest rate changes from moment to moment. Also, unlike Bitfinex, which performs daily settlement, FTX provides an hourly settlement system.

According to a report from an experienced user who has used both Bitfinex and FTX’s lending services, “Bitfinex’s interest income is a little better now, but FTX has its own advantage because the interest rate is relatively constant without taking a 15% commission. I think it seems.” If you are a cryptocurrency investor pursuing between bank stability and DeFi (decentralized finance) yield, using the CeFi (centralized cryptocurrency finance) service seems to be one way.

Reporter Park Sanghyuk [email protected]