The cryptocurrency market is said to be the most volatile now, as evidenced by Bitcoin’s price volatility reaching a 14-month high in June 2021. To cushion the impacts, individuals may consider depositing their crypto assets into interest accounts that would help generate more yield without having to actively trade their crypto assets.
One such platform that allows you to do exactly that is Hodlnaut.
History of Hodlnaut
Hodlnaut is a Singapore-based centralized finance (CeFi) crypto lending platform that provides financial services to individual investors where they can earn interest on their cryptocurrencies. Founded in April 2019 by self-proclaimed bitcoin maximalists Juntao Zhu and Simon Lee, the company has a mission to help hodlers get the most out of their crypto assets. At present, Hodlnaut has grown to a team of more than 20, with 5000+ active users and an AUM of $250 million.
The platform is also recognized by the Infocomm Media Development Authority (IMDA) of Singapore. Moreover, Hodlnaut is part of Antler’s portfolio company, a global venture capital (VC) firm backing early-stage startups.
What does Hodlnaut Offer?
Earn Interest on Crypto
Hodlnaut allows individuals to earn favorable interest rates based on the amount deposited in the Interest Account. Users would be able to earn interest on six supported assets: Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Tether (USDT), Dai (DAI), and Wrapped Bitcoin (WBTC). Once deposited into the Interest Account, users will start earning interest at a compounded rate.
Bonus: There is no minimum deposit amount, neither are there any additional fees when you deposit your crypto assets with Hodlnaut. Furthermore, the interest is paid out weekly to each user’s wallet, and the deposits can be withdrawn at any time.
VIP Fixed-term Loan
The VIP Fixed-term Loan offers the highest interest rates to customers who hold their crypto with Hodlnaut for a mutually agreed-upon term. This feature provides a higher yield on both cryptocurrencies and stablecoins. However, it is important to note that these interest rates are subject to change according to market conditions and the terms of the fixed loan. To be eligible for the VIP Fixed-term Loan, customers would need to meet the following requirements:
- Lock in their cryptocurrency with Hodlnaut for either 1, 3, or 6 months to earn interest at a higher yield.
- Deposit an equivalent of 100 BTC or more in a single asset class to avail of the fixed-term loan.
- Hold the fixed-term balance till the end of the term (The deposited funds cannot be used as collateral during the term).
When users opt for the VIP Fixed-term Loan, the interest earned is calculated according to the Annual Percentage Rate and paid out at the end of the term in a single payout. Do note that, therefore, as a user of this product, the interest earned would not be compounded.
On top of earning interest on your crypto assets, Hodlnaut has a Token Swap function where users can swap tokens seamlessly and earn interest from the available assets. Users can also manage their portfolios and rebalance their asset holdings without leaving the platform. This allows for a more effortless and seamless user experience as they don’t have to spend on transactions between wallets (PS: The Token Swap feature is currently available for non-Singaporean users only).
And with the newly launched Wrapped Bitcoin (WBTC), users can get instant access to WBTC without sourcing for a wrapping merchant. Thus, enabling an ease of swapping from Bitcoin to Wrapped Bitcoin and vice-versa for a clean price without any additional fees.
Supported Currencies and Interest Rates
At present, Hodlnaut offers six different currencies, namely, Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Tether (USDT), Dai (DAI), and Wrapped Bitcoin (WBTC). The effective annual interest rates are as follows:
Hodlnaut Affiliate Program
Hodlnaut also offers an Affiliate Program where users can invite a friend to join Hodlnaut and earn 10% of their friend’s interest, allowing them to generate a greater yield on their initial deposit. Furthermore, each friend referred will get a $20 signup bonus as long as their first deposit is US$1000 or more.
There’s a variety of ways to grow a successful Affiliate Program by:
- Adding a Hodlnaut banner with your unique referral link on your personal or business website.
- Writing a review on Hodlnaut or creating video tutorials and including your referral link.
How to Register
To register for an account and start earning more crypto, head over to hodlnaut.com and create an account. The quick signup process takes minutes to complete and is followed by a mandatory KYC (Know-Your-Customer) verification. Once verified, users can begin depositing their crypto to earn immediately. For users who have passed the KYC process, they will be able to join Hodlnaut’s Affiliate Program.
Hodlnaut’s fees operate on withdrawal activities only, adjusted to current blockchain market conditions, with all token swap features and deposits free of charge. The effective withdrawal fees are as follows:
Cryptocurrency is indeed a complex topic, and thus, Hodlnaut ensures that all users are equipped with the knowledge on all things crypto through its informative articles.
The Hodlnaut Resource is a dedicated section with articles that cover topics across the entire Defi ecosystem, from interest accounts to loans and borrowing, and guides for using cryptocurrencies. It is updated regularly to ensure users are informed on the latest news and happenings within the crypto and blockchain space.
In order to help individual investors get the most out of their cryptocurrencies, Hodlnaut has partnered with some leading institutions including:
Fireblocks is an enterprise-grade platform that delivers a secure infrastructure for moving, storing, and issuing of digital assets. It employs next-generation private key security (MPC-CMP) and hardware isolation technology (SGX). This then helps to eliminate any failures and prevents digital assets from cyberattacks, internal collusion, and human error. By integrating Fireblocks, Hodlnaut users are able to access their digital assets securely.
Jumio is known to be a provider of end-to-end AI-powered identity verification and eKYC solutions. Hodlnaut’s partnership with Jumio allows users to quickly and easily complete identity verification in line with the KYC and onboarding process.
Nexus Mutual is a decentralized alternative to insurance. It uses the power of Ethereum to allow individuals to share risks together without the need for an insurance company. This partnership gives Hodlnaut users an option to purchase insurance on the funds deposited and works as an additional safeguard.
Pros and Cons
Here, we sum up some of the key pros and cons of using Hodlnaut:
- High interest rates
- No lock-in period or minimum deposit required
- No deposit fees required
- Deposits can be withdrawn at any time
- Weekly payouts to each user’s wallet
- Offers additional insurance
- Does not support fiat deposits
- No Android app (iOS app launching soon)
- Limited cryptocurrencies
Hodlnaut is an ideal option for those who plan on earning more on their crypto assets. Its seamless signup process and user-friendly interface makes it easy to use for any individual. Plus, the interest rates are amongst the highest in the market, allowing individuals to make the most out of their crypto. The Token Swap feature is also one to note, as it gives users the ability to swap their tokens without leaving the platform.
Hodlnaut has also taken various measures to ensure that the deposited funds are secured through two-factor authentication, as well as Fireblocks integration. In addition, users can withdraw funds to only whitelisted addresses, preventing any potential hacks and external threats.
David is a crypto enthusiast and an expert in personal finance. He has created numerous publications for different platforms. He loves to explore new things, and that’s how he discovered blockchain in the first place.