CREDEARN allows Uphold members to to earn up to 10% interest when they loan certain digital assets or commodities to CRED. The interest rate differ according to the digital asset and whether you are holding CRED native token, LBA or not.
The supported currencies and commodities:
BTC
XRP
ETH
Euro
USD
Gold
How is the interest calculated?
Let's say that you want to invest 2000 XRP from Uphold wallet in CRED.The interest payment amount will be based on the market price of XRP on the day that the program starts. So for example, if today is the start date, they would price XRP at $0.32 and your annual interest payment would be 2,000 * $0.32 * interest rate.
If you have 10 000 LBA ( native token of CRED) you would get interest rate at 9% which gives annual interest payment total of $58, while without holding LBA, the annual interest payment would be 7% or a return of $45. The current LBA token is at around $0.047, so to get 10k LBA tokens need less than $500.
The 2,000 XRP would be returned to you upon program maturity.
Does the interest amount change with the market value of your asset during the holding period?
The interest is calculated and locked down on the first day of the investment start. This will not change during the duration of the program. Interest is deposited every 3 months. So for a 6 month program, you will receive your interest payments 2 times - at the end of the 3rd month and the 6th month. At the end of the 6 month, your asset would be returned to you along with the second interest payment.
What currency is the interest given?
Interest payments will be in USD and to receive it, you can simply create a USD card in your Uphold wallet. Upon receiving the payments, you can convert this to another currency of your choice which is supported within the Uphold platform, including cryptocurrency.
What is the interest for lending BTC ?
Let's say you enroll in a CredEarn program with 1 BTC and you are holding 10k LBA, this would give you a 10% annual return. On the day the program starts, let's say BTC is at $5,000. You annual interest would be 1 * $5,000 * 10% = $500. So every 3 months, you will receive $125 in your Uphold wallet as interest payment. The program matures at 6 months and you have the option to renew (i.e. continue to accrue interest on your BTC investment). If you decide to opt-out from renewal, they will return the 1 BTC to you and the value of that is based on the market price on that day.
Cred is a licensed and regulated lender and work closely with several custody partners such as Uphold, BitGo, and soon Bittrex Enterprise.
Disclaimer:
This is not a financial advice.This information is general in nature and has not taken into account your personal financial position or objectives. Before proceeding please refer to a licensed adviser.
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