Bitladon will offer a 3% interest rate on stable coins
AALSMEER October 4th, 2019 – Bitladon will start offering an interest rate of 3 percent on stable coins they offer. These are; TrueUSD, Paxos Standard, TetherUSD, and Dai.
During the last months, we have seen multiple reports and news articles regarding negative savings interest. Pay to trust a bank with your savings? It sounds crazy, and it actually is.
Why Bitladon offers an interest rate on stable coins
At this moment, multiple banks in Europe offer an interest of less than 0,1%, and some banks have already implemented a negative interest rate. We can probably expect more to follow shortly if we have to believe the European Central Bank.
Why Stable coins?
The stable coins Bitladon offers are directly linked to the value of the US dollar. When you put your money into stable coins, you will not have the risk of losing savings because of volatility but still have the benefits of a cryptocurrency.
If you are thinking about putting your savings into cryptocurrency, but you do not want to run the risk of losing money because of the volatility of coins such as the bitcoin, then stablecoins might be a good alternative. Or, what if you possess bitcoin and you expect the price going down? You can trade it for a stable coin like TetherUSD to keep your ‘profit’ and trade it for bitcoin again once the price has settled.
But how nice would it be when you receive interest on your savings? – Well, we have news for you! At Bitladon.com, they are going to give interest to your stablecoins!
How it works
The interest is 3% yearly, paid daily, and added to the users’ accounts. They only offer interest in stable coins, which are TrueUSD, Paxos Standard, TetherUSD, and Dai.
To receive interest, the coins must be stored in your Bitladon account wallet. They do not have to be bought directly at Bitladon. Sending them from other wallets also means that you will earn interest.
The technical updates have already been processed, and it is active as we speak!
How is Bitladon able to afford this?
Bitladon will soon allow users to borrow money with crypto as collateral, on which interested will be paid. They will use the proceeds from this to pay interest to the people who keep their stable coins with them.
Exact details will be announced very soon.