BTSE Earn feature allows users to generate interest from their crypto assets. With this new feature, BTSE has provided traders the opportunity to earn interest on their idle assets. BTSE provides both flexible and fixed-term deposits for digital assets like Bitcoin and Ethereum. There are also other notable stablecoins with different interest rates. However, the BTSE crypto exchange is likely to release additional crypto assets in the near future.
The availability of the flexible option allows crypto traders to unstake anytime they want. On the other hand, the fixed-term deposits require users to stake tokens for an extended time frame. Whether flexible or locked term deposits, users will be rewarded with an annual percentage yield (APY). Traders who engage in locked-term deposits will be rewarded with higher APY on the BTSE platform.
The first phase of the BTSE Earn feature has compatible cryptocurrencies like USDC, TUSD, USDT, BTC, and ETH. Meanwhile, the BTSE team said users should expect more functionalities with time. In the second phase of the launch, lending and borrowing capabilities will kick-off. This is in a bid to be relevant in the DeFi. This new Earn feature will undoubtedly open more frontiers in the DeFi.
Let us take a look at the possible ways that BTSE Earn can impact the Defi space.
BTSE Earn feature and decentralized finance
Decentralized finance has been one of the most bussing and growing aspects of digital assets. It aims to disrupt traditional financial services by making banking peer-to-peer. Defi seeks to provide the same services as traditional financial institutions, only that it doesn’t support intermediaries.
One of the most popular forms of Defi is a lending platform, and this is where BTSE comes into play. With its new Earn feature, the BTSE cryptocurrency exchange has become a DeFi platform. The news feature connects both lenders and borrowers of digital assets. These lenders and borrowers aren’t just connected; they generate and earn yields on the platform. The interest rates will be set algorithmically to control demand and supply on the BTSE ecosystem. For instance, if there is a high demand to borrow a particular digital asset, the yield (interest rate) will be pushed higher.
As a DeFi platform, BTSE allows lenders to earn interest by offering their crypto assets to BTSE’s capital pool. A lender‘s interest is guaranteed and dependent on the type of asset he/she chooses to lend. However, if you redeem your stacked asset earlier than the agreed period, your interest will be canceled. Some platforms like Uniswap and Compound have been in the DeFi space for a while. The addition of BTSE to the fold is a great way to move Defi to the mainstream further.
How does the Earn feature work?
Earn feature offers a means for crypto-asset holders to earn passive income via their crypto portfolio. These holders lend out their coins to the BTSE pool and expect a commensurate interest on their coins. A holder can decide to be a flexible term depositor or fixed-term deposit. The compounding interest means the addition of initial deposits and the accumulated interest.
This is only the first DeFi feature to be incorporated into the BTSE exchange.
The incorporation of the Earn feature on BTSE has undoubtedly opened a new frontier for Decentralized finance. With these new features, the BTSE cryptocurrency exchange is beginning to step up to the likes of exchanges like Binance, etc.