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Review

Hodlnaut Review – Cryptocurrency lending Platform

What is Hodlnaut?

Hodlnaut is a crypto lending company located in Singapore with the goal of delivering cutting-edge financial solutions to cryptocurrency users. The business currently has more than USD $500 million in assets under management, and it’s growing at a monthly rate of around 20%.

Hodlnaut is a cryptocurrency lending and borrowing platform that offers Bitcoin interest rate of up to 7.46% (as of September 8, 2021) in comparison to Blockfi’s 4.9% return on investment. There are no fees for making a deposit, but there is a small fee for withdrawing your funds. Users on the site have the option of investing in cryptocurrencies including Dai (DAI), Ethereum (ETH), US Dollar Coin (USDC), Tether (USDT), Bitcoin (BTC), and Wrapped Bitcoin (WBTC).

The Singapore Fintech Association has recognized Hodlnaut’s certification. It is also currently undergoing the process of obtaining a license under the PS Act 2019 (by the MAS) and aims to be the first regulated entity in Singapore within the Crypto Borrowing and Lending Space.

Pros

+ Up to 12.73% APY on cryptocurrencies

+ Weekly compound interest

+ No minimum investment amount

+ Unlimited lending duration

Cons

– 6 supported assets (larger platforms have 30+)

– Relatively young platform (2019)

– There is no Crypto credit card offered

History of Hodlnaut  

In April 2019, Bitcoin maximalists Juntao Zhu and Simon Lee launched Hodlnaut in Singapore, a project dedicated to help hodlers maximize the productivity of their crypto assets. The service has also expanded dramatically from over 100 users in 2019 to 5,000+ today. In addition to this, the team has increased to over 20 headcounts at its headquarters in Singapore.

What Does Hodlnaut Have to Offer?

Hodlnaut allows users to earn better interest rates on their cryptocurrency deposits by enabling them to borrow money at favorable rates. Vouched and authorized institutions receive the entrusted assets as loans.

Currently, interest is offered by Hodlnaut on the following cryptocurrencies:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Dai (DAI)
  • USD Coin (USDC)
  • Tether (USDT)
  • Wrapped Bitcoin (WBTC)

There is no minimum deposit required and the money may be withdrawn at any time. The following annual compounded interest rates (APY) is available for Hodlnaut’s supported coins:

  • Bitcoin (BTC): up to 7.46% APY
  • Ethereum (ETH): up to 7.46% APY
  • Dai (DAI): up to 8.32% APY
  • USD Coin (USDC): up to 12.73% APY
  • Tether (USDT): up to 12.73% APY

You can check their interest rates here.

The amount of interest is determined by market conditions and the previous month’s earnings. Users may earn interest on a daily basis, which is transferred to their account every Monday at 5pm GMT.

Token Swap

The new token swap function allows HODLers to trade between different assets within the Hodlnaut platform. This enables users to choose the type of asset in which they would like to earn interest in and rebalance their asset holdings without leaving the Hodlnaut platform.

Users will be able to execute transactions more swiftly with the feature, which will provide a seamless user experience by eliminating the hassle of a two-step trade process and superfluous wallet transaction fees. Users may exchange two tokens directly within the Hodlnaut dashboard without having to go through a separate wallet transaction.

What is the best way to get interest on Hodlnaut?

You’ll see an overview of all the assets on the platform and their interest rates after logging in to your account. Head over to the “Deposit/Withdrawal” tab at the top of the page to choose the asset you would like to deposit and retrieve the deposit address.

After you’ve copied the deposit address, you may send your crypto assets to it. If you keep your cryptocurrencies with a crypto exchange like Coinbase, you will be able to transfer them to the Hodlnaut deposit address within a few hours.

If your account has been credited, Hodlnaut will notify you by email.

Hodlnaut Fees

While there are no minimum deposits and lock-in periods, there is a small withdrawal fee to note depending on the currency.

As of 8 September 2021, the withdrawal fees are as follows:

  • Tether (USDT): 10 USDT
  • USD Coin (USDC): 10 USDC
  • Dai (USDC): 10 DAI
  • Ethereum (ETH): 0.0036 DAI
  • Bitcoin (BTC): 0.0004 BTC
  • Wrapped Bitcoin (WBTC): 0.0004 WBTC

Customer Service at Hodlnaut

How does Hodlnaut stack up to the competition in terms of customer service? For any queries, you can email them at [email protected]. If you live in the United States, allow for extra response time since Hodlnaut is headquartered in Singapore and operated by Singapore Time.

What is the Best Way to Open a Hodlnaut Account?

To create an account with Hodlnaut, head over to https://app.hodlnaut.com/signup.  You will then be required to pass the mandatory Know Your Customer (KYC) verification procedure. The good news is that signing up and performing KYC is simple using the Hodlnaut iOS Mobile App or the web platform. Bitcompare readers can get a sign-up bonus of $20 when opening a new account with Hodlnaut and depositing at least $1,000 USD equivalent in any asset class in a single transaction 1 week from the first deposit.

Why is KYC verification necessary? 

It’s part of a larger Anti-Money Laundering (AML) initiative that ensures each consumer’s identity, risk, and suitability. Although KYC verification procedures were originally only used by traditional lending companies, they’re becoming more popular among fintech businesses.

How does Hodlnaut keep my money?

Hodlnaut uses Fireblocks’ multi-party computation wallet architecture to safeguard your assets. When a user joins Hodlnaut, they are assigned a unique address by Fireblocks. Before being lent to one of the company’s institutional partners, these funds are secured with Fireblocks’ wallet infrastructure and kept in its vaults.

Safety Measures

Hodlnaut is a certified Fintech Company by the Singapore Fintech Association, and it utilizes cutting-edge security measures to guarantee client money is safe.

The platform uses Fireblock’s multi-party computation wallet infrastructure to safeguard the private keys for accessing any crypto assets. The cryptocurrencies are initially stored in the Fireblocks wallet and subsequently transferred to Hodlnaut’s cold wallet or given to borrowers. Hot wallets are not used, which might expose users to security risks and have resulted in a number of crypto platform breaches in the past.

Conclusion

Overall, the services and products provided by Hodlnaut make the platform highly attractive for everyday investors who aim to maximize the productivity of their crypto assets. When compared to other platforms, the interest rates of up to 7.46%% on Bitcoin and 12.73% for stablecoins are one some of the most favorable in the market.

Furthermore, as a hedge against a portfolio’s volatility without incurring any trading fees, the Token Swap is an excellent feature.

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