Hodlnaut Interest Account: 7.25% Interest Rates Explained
Any HODL-er or crypto enthusiasts would like to earn interest on their assets in a hassle-free manner, and one of the best ways to do it is with Hodlnaut. Our crypto interest account is effectively giving you annual interest rates up to 7.25% on your Stablecoins, with no minimum deposits or lock-in periods. In addition, we also offer a 4.08% annual interest in Bitcoin, and all deposits automatically earn the best rate and the interest compounds every week.
Sounds too good to be true? Those who have deposited their crypto and earn interest with us would confirm that it is true. The next question is: how is that possible? In reality, banks are paying their depositors a 1.3% annual percentage yield (APY) on average for the savings account.
How can Hodlnaut Pay a 7.25% Annual Interest Rate?
To put it simply, we analyze supply and demand on our available crypto assets to set a fluctuating interest rate that adjusts as market conditions change. Also, we take earnings from our previous months into consideration.
While we try to keep our interest rate constant, it is subject to change and updated monthly based on the market conditions. The good news is all Hodlnaut users automatically get the highest interest rate possible, and you can check the latest available rates on our website or from your account dashboard.
How do I Know Hodlnaut’s Borrowers will Pay Back Their Loans?
As with any investment, there are risks, and you need to understand the fine print before investing. At Hodlnaut, we take significant measures to ensure the assets in our custody are safe. We only lend to selected partners that we have vetted and are mostly regulated entities in Singapore (our headquarters). Furthermore, we have built and maintained good relationships with all of our partners, and we make sure they have excellent financial standing.
Because we’re very selective with whom we lend out to, making sure they have a solid credit score, the loan is collateralized. This results in a low risk of default. In the worst-case scenario where borrowers refuse to return the coins, Hodlnaut will revert to the substantial legal contract and take appropriate legal action to recover the funds.
We do our best to keep our crypto interest rates competitive among other players in the industry. The overall market conditions and the supply and demand influenced the way we calculate our interest rates.
Disclaimer: By using Hodlnaut, users expressly acknowledge and agree to the Terms of Use listed on our website at www.hodlnaut.com. This includes the relevant risk warnings applicable to you as a user of Hodlnaut's services, prior to/when carrying out Digital Payment Token (DPT) transactions. This article is for informational purposes only, and is not an offer nor a solicitation to invest in DPT, securities, funds, partnership interests or other investments or funding or purchasing loans. It is the user's sole responsibility to conduct due diligence and research extensively into each DPT and platform, and understand that the volatility and unpredictability of the price of DPT may result in significant loss over a short period of time. No information on Hodlnaut should be considered to be business, legal, financial or tax advice regarding the use of Hodlnaut. Users should consult their own legal, financial, tax or other professional advisors before using Hodlnaut. Please refer to our website at https://www.hodlnaut.com/tos for the full Terms of Use.
