Why Binance Doesn’t Have A Crypto Lending feature like KuCoin/Gate ?
So to hit it off. I am not talking about the Crypto Loans service where the user puts his digital assets as collaterals in exchange of loan in FIAT currency. No! Nope this service already Binance , Celsius , Nexo provides.
I am talking about these
So basically as an user I want the exchange (read Binance) to use my crypto to lend it out to other users. I am a fairly active bee and this somehow bothered me why the biggest global exchange doesn’t provide this service.
Until I read about a story about :
What is a Savings Account?
You all know what it is, but there’s another aspect to it. Let’s try to read between the lines.
When banks were first set up — long, long time ago in a galaxy far, far away — to do business. Banks started a scheme to fund its operations in which people would LEND money to banks at a daily interest rate i.e. Lending Rate. This account was known as LENDING ACCOUNT. (At less interest rate)
The banks would use this money for other purposes like providing liquidity/LOAN, etc. For this bank charges much higher interest.
At that time, formal financial structure wasn’t so prevalent, and it was really easy for someone to compare difference between two ‘Lending Rates’. So, public would rather do it unofficially amongst themselves.
How to solve this problem?
Some genius son-of-a-gun came up with an idea to call a Lending Account as “SAVINGS ACCOUNT” (public lending money to the bank)
Lending Interest → Savings Interest Rate.
Benefit?
1) Banks changed the story from you “lending money” to “earning money”
2) No active comparison of spread between two lending rates
In retrospect, we all know that how money in our accounts is used but the idea we need to understand is how a small name change (i.e. #rebranding ) of an existing business process altered the narrative.
So Binance does has this product but with a different name. Its called FLEXIBLE SAVINGS.
Trivia : Back in late 2019, Binance first started the aforementioned service with the name of Crypto Lending but later they rebranded it to its current form.
Best Indian Cryptocurrency Exchange : PocketBits [Code = BU99-C047]
No Shit Coins |Fastest Customer Care| No INR Banking Issues
Best Global Cryptocurrency Exchange : Binance [Code = 10288382]
All Major Coins| Passive Income |Simple App | Learning Resources
Best Upcoming Global Crypto Exchange : KuCoin [Code = 21u3d]
Freebies| High Potential Small Caps | Pool Staking | High Liquidity
Best DeFi Passive Income Platform : Celsius Network [Code = 197823bd97]
No Min. Deposit| Great UX | Realistic Interest | Fixed Supply CEL rewards
Get PAID for just reading and/or writing articles — Publish0x