OKEx, a popular cryptocurrency exchange has now incorporated a new feature that will enable its users to lend their tokens to margin traders and earn interest on them. Pegged as OK PiggyBank will be available for all users, they just have to transfer their spare tokens into the PiggyBank and receive daily rewards.
The company’s website announced and elaborated more about the service on their support section. OKEx will be lending the funds placed by the users in their PiggyBank. A part of the interest received from the margin loans will be kept by them and rest given to the users. The blog post stated:
“The logic is simple. When you put your spare coins into OK PiggyBank, we will lend the funds as margin loans to our margin traders. And then, part of the margin interest collected from traders will be allocated as the interest for your OK PiggyBank.”
OK PiggyBank is out of beta and now officially available to all users! Simply transfer your spare tokens into the PiggyBank and you'll get daily rewards.
Learn more: https://t.co/NyO1RH8cOe pic.twitter.com/b9fSbUw0sT
— OKX (@okx) December 26, 2018
As of now, the PiggyBank offers support for Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Tether (USDT), Ethereum Classic (ETC), EOS, and XRP. All these tokens are also available for margin trading.
The platform will charge 15% of the daily margin interest and the rest will be distributed to the users as per the coins they hold in their account. Furthermore, the profit earned by the exchange will be employed to increase the insurance fund, in case there are some issues with the platform. As and when the system grows these funds could be employed for other purposes as well.
For around a month, OK PiggyBank have been in a testing period. The users can now start receiving daily interest from clients that use margin trading. Notably, there is no lock-up restriction and no minimum deposit requirement in the feature, so the user can withdraw their fund as they see fit. Indeed the feature is quite lucrative for the small investors who would like to earn an extra profit a day with their funds.
Read more: OKEx Cryptocurrency Exchange Launches No-Expiry Bitcoin Perpetual Futures Contract
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