New Product Launch: Crypto Lending

POKKET is launching a new Crypto Lending product today, 8 December 2020. As the world’s first platform to introduce structured savings account for cryptocurrencies, we are now venturing into a more simple saving product — a straight lending product that earns passive interest without token conversion options at payout.

To start, we are offering Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD Coin (USDC), and TrueUSD (TUSD) savings for the Lending product line.

Lending rates

Here are our interest rates (APY) and duration choices for our Lending product at launch:

How it works

We pay you interest on the digital assets you save with us at a fixed period of 14, 30 or 90 days. The interest is paid in the original token you’ve saved with us, regardless of the market price of the token. When you create a new saving, your token is locked for the duration, and the interest is fixed during the saving period.

Similar to our current structured saving products, you will need to send tokens to your wallet at POKKET in order to create new Lending. Once the tokens are in your wallet, you click on the token and duration pair of your choice, and follow the New Saving popup window to create new Lending.

Creation of new savings and maturing of the savings occur once a day at 07:00 UTC Settlement Time.

Annual interest rates changed to APY from APR

In addition, in light of the release of the new Lending product, we’re changing the way we show our annualized interest rates. Previously, we’ve opted to show annual interest rates as annual percentage rate (APR), which does NOT take compounded interest earning into account.

However, as other lending platforms on the market typically show their annual interest rates as annual percentage yield (APY), we’re changing all our annual rates to APY basis, so it will be easier to compare these rates. It should be noted that the APY calculation includes compounded interest earnings, and can be higher than a simple annualized interest rate, or APR.

This change is also applied to our current products — Token Structured Saving and Stablecoin Structured Saving. Since our structured saving products pay interest weekly, the APY based interest rate will appear much higher than a simple APR based calculation because it includes the compounding effect. As a result, the interest rates on our structured saving products may appear as it is increased significantly. But in reality, it’s just a change in the way we show our annualized interest rates from APR to APY basis.

New stablecoin added: USDC

We’ve also added USD Coin (USDC) support on our platform. You can now earn interest on your USDC through our Stablecoin Structured Savings, or choose USDC as the underlying stablecoin with our Token Structured Savings. If you don’t want to earn market volatility-tied interest with our structured products, you can simply earn interest on USDC with the new Lending product. (This change will take effect tomorrow, 9 December 2020.)

Collateral and Insurance Fund

With the addition of our new Lending product, we’re changing the structure of our Collateral wallet and turning it into our Collateral and Insurance Fund. Similar to other crypto platforms, we’ll utilize this Collateral and Insurance Fund to make our customers whole in the case of security breaches or other serious emergency situations. Read more about it from our FAQ Section.

More new products coming

Stay tuned for more awesome updates as we work towards further development of the crypto market!

Check out the interest rates on the new Lending product and our Structured Saving products on 63 different tokens.