Hodlnaut: What is it?
Hodlnaut is a cryptocurrency investment platform that generates interest out of digital assets, so individual investors can grow their digital assets. In the crypto space, “Hodl” is a slang term used to refer to holding crypto assets rather than selling them. “Astronaut” is derived from the words “Hodl” and “Astronaut.”
History:
Juntao Zhu and Simon Lee founded Hodlnaut to maximize hodlers’ cryptocurrencies. They hope to grow the productivity of digital assets through the platform by offering an alternative solution for hodlers. In exchange for lending the asset in the form of crypto loans to diligently vetted margin traders, Hodlnaut offers attractive interest rates on its Interest Account.
Some of the region’s leading companies, such as Singapore Management University, Three Arrows Capital, and BitGo, are backing the project. In addition to that, Hodlnaut has been invested in by Antler, a global venture capital firm.
Hodlnaut’s credentials include accreditation from the Singapore Fintech Association (which is recognized by the Singapore Monetary Authority). Furthermore, the Singapore Standard Payment Institution License application has also been submitted and is currently being reviewed.
Hodlnaut has two main products:
Hodlnaut Interest Account: Get attractive interest on your cryptocurrency
The Hodlnaut Interest Account offers an annual return of 8.3% (APY). The weekly interest payment is made in kind every Monday. There are five asset types currently supported by the platform: Bitcoin (BTC), Ethereum (ETH), Dai (DAI), USD Coin (USDC), and Tether (USDT).
Based on market demand and earnings from the previous month, users earn the best interest rate available automatically. Withdrawals are always available regardless of the amount deposited. You can increase the productivity of your cryptocurrency by depositing it in a Hodlnaut Interest Account.
Those with over 100 BTC (or equivalent) deposited with Hodlnaut Fixed-term Loan will receive higher interest rates than those with lower interest rates. As of today, the VIP program supports BTC at a 6.7% annual percentage yield, Ethereum at a 7.2% annual
percentage yield, and USDC at a 10.5% annual percentage yield. The rate of fixed deposits may change during negotiations.
Hodlnaut Institutional Loans: get a credit line using your cryptocurrency as collateral
A Hodlnaut loan can be obtained at some of the lowest interest rates on the market.
it can tailor loans for institutional clients according to their needs. Moreover, it is the counterparty in all loan transactions.
An overview of the Hodlnaut Institutional Loans:
- With a minimum loan of USD 50,000
- A fixed term of 3+ months or an open term is available
- 25% to 100% loan-to-value flexibility
- There are no hidden fees
In addition to diversifying your crypto investments, crypto loans can also be used to secure financing for your business needs. Due to their complexity, they may have different terms and conditions depending on the lender. Institutional loans, but not to individuals, are the only type of crypto loans available currently.
How does it work?
Through its lending process to institutions, Hodlnaut can offer individual investors competitive interest rates. The deposit and interest are paid out in the same currency every Monday at 5 PM (GMT +8). Hodlnaut’s user-friendly dashboard allows users to view their balances and interest earned at any time
Signing up takes just minutes. The Know-Your-Customer (KYC) verification process is required by Hodlnaut. Singapore has enacted a recent regulation in this regard. Users will be able to deposit their crypto assets on the platform once the KYC process has been completed. The quickest way to start earning interest is to start with the best rate and with no minimum deposit. Users can withdraw their initial deposits and interest earned at any time if they no longer wish to participate in their Interest Account.
Additionally, it offers ‘corporate’ crypto loans, by which clients can use their digital assets as collateral to obtain lines of credit. The loan amount can reach up to 100% of the property’s value with a loan-to-value ranging between 25% and 100%. As a counterparty, it is flexible to meet the needs of clients.
As of April, it introduced a token swap feature that allows users to seamlessly switch between different asset pairs. Those using the Hodlnaut swap function can instantly trade BTC, WBTC, ETH, USDC, and USDT between any of the assets on the platform.
How to Make Money in Hodlnaut?
It makes money on the difference between the interest it pays users and what it charges institutional borrowers for loans based upon the collateral you provide.
Zhu says that our counterparties are subject to incredibly strict capital requirements. Anyhow, we are very selective about whom we lend to. Our loans are typically 70% or lower in Loan-to-Value (LTV) ratio, and we only lend to companies with strong credit scores during the onboarding process.”
Platforms also earn interest by lending their assets to decentralized protocols.
Is it Safe?
Hodlnaut hails from Singapore, which can create some unfamiliarity for American audiences.
In the cryptocurrency interest accounts industry, there is no FDIC insurance for digital assets, and one of the main depositor protections is completely missing. A cryptocurrency account in Singapore is not protected by the equivalent of FDIC insurance.
It is never entirely risk-free to invest in it or any other cryptocurrency platform.
The Hodlnaut company, however, mitigates this risk.
