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Stablecoin Returns are Unstable… Just Ask Hodlnaut

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Singapore-based crypto lending and borrowing firm Hodlnaut has lowered its interest rates and tiers for stablecoins and crypto on the platform, which will take effect on 18 April 2022.

Currently, Hodlnaut offers up to 12.73% APY on stablecoins such as USDT and USDC. The revised rates will see users earn up to 9.41% APY for said assets. Users will also earn a lower interest rate on non-stablecoin assets such as BTC and ETH.

Demand for stablecoins constantly exceeds supply – they ensure liquidity for crypto exchanges, provide a safe haven for investors during periods of high volatility, and act as a collateral in DeFi lending and staking pools. Therefore, investors/ lending platforms with stablecoins to lend are able to charge premium interest rates, and borrowers offer high interest rates to attract new stablecoin lenders.

The firm said taking a “dynamic approach” towards its open-term interest rates – interest rates will be reviewed on a monthly basis – was in line with its goal to remain a “sustainable business while offering the best risk management policies in times of market uncertainty”.

New offerings

The platform has also launched two new asset offerings – TerraUSD (UST) and Terra (LUNA).

Users will be able to earn up to 13.86% and 6.71% APY for UST and LUNA open-term deposit respectively.

“The Luna Foundation Guard (LFG) has proven to support the growth of the Bitcoin ecosystem, which is in line with Hodlnaut’s vision. Therefore, we are proud to announce the support of Luna and UST on the Hodlnaut platform”, Juntao, CEO and co-founder of Hodlnaut, said.

At present, users will only be able to deposit and withdraw wormhole UST and Luna (wormhole is a protocol connecting tokens to multiple chains e.g. between Terra and Ethereum) via the ERC-20 network. However, Hodlenaut is ensuring that the firm meets “rigorous regulatory and security framework” and is expecting to support UST and LUNA on the their native Terra chain by the end of this year.