Hodlnaut is a Singapore-based entirely cryptocurrency hobby account platform that supplies compound hobby of 10% for stablecoin assets and 6% for Bitcoin.
Whilst you break up right entering your crypto hobby account search, welcome to a world where cryptocurrency holders can mechanically and passively accrue hobby on their digital assets.
Hodlnaut is a relative newcomer to the cryptocurrency hobby account block, nonetheless it undoubtedly supplies one of the essential trade’s extra aggressive charges.
So, you might perhaps presumably even be wondering, is Hodlnaut legit? It’s a extra contemporary platform with a smaller crew with less funding than trade pioneers BlockFi and Celsius. Yet, it’s within the conversation as a top cryptocurrency hobby account platform.
The next Hodlnaut overview examines its hobby account product, security practices, usability, crew community belief, as well to an uncommon interview with a representative from the Hodlnaut crew.
Let’s dig in.
Hodlnaut Overview: Fast Summary
Hodlnaut is a Singapore-based entirely company founded in 2019. It’s out there worldwide, with the exception of places prohibited by Hodlnaut Coverage or Sanction Regulations.
Holdnaut derives its name from the crypto slang HODL (Establish On for Dear Lifestyles), which is an fervent expression that refers to keeping your digital assets moderately than promoting them, irrespective of the volatility of the market. The latter half of the corporate name is within the motif of “astronaut.”
The platform has gathered about $250M in assets below its management from over 5,000 customers, in accordance to its living.
Hodlnaut has raised about $100,000 in funding from one pre-seed funding spherical with Antler, a Singaporean startup accelerator and mission capitalist agency.
Hodlnaut’s fundraising as of July, 2021.
Right here is distinctly numerous from platforms like BlockFi, which has raised north of $500M. That being talked about, Hodlnaut appears to accept as true with narrowed down on a identical business mannequin, right with enormously less funding essential.
There is no minimal steadiness to qualify for crypto hobby. Hodlnaut supplies:
- 6.2% APY on BTC
- 6.7% APY on ETH
- 10.5% APY on stablecoins.
- Hodlnaut’s Token Swap lets customers alternate tokens straight within the app e.g, BTC to ETH
- Deposits are free and customers can withdraw anytime. Then again, there are withdrawal fees and a each day withdrawal limit of 100 BTC.
Signing up for Hodlnaut is a somewhat easy route of, with the conventional KYC requirements.
CoinCentral readers can obtain a $20 signal-up bonus after they deposit as a minimal $1,000 on Hodlnaut.
The Hodlnaut Body of workers
Holdnaut Founders
Hodlnaut was once founded by CEO Juntao Zhu and CTO Simon Lee. The duo beforehand founded Cypher Forge, a cryptocurrency trade execution platform.
Zhu spent over three years as an analyst and developer with the Swiss wealth management agency Credit Suisse.
Lee spent over three years in engineering management roles. The two founders preserve a combined nine years of skills in arrangement construction, finance, and engineering.
Hodlnaut Overview and Curiosity Charges: How Does Hodlnaut Compare?
Hodlnaut supports six cryptocurrencies: BTC, ETH, DAI, USDC, USDT, and WBTC, offering between 6.2% and 10.5% APY.
Hodlnaut’s Curiosity charges (Supply: Hodlnaut)
Though the collection of assets it supports is a long way now not up to other crypto hobby accounts (Gemini or Celsius make stronger over 30+ tokens, Hodlnaut mute supplies very aggressive charges with out a minimal balances or rate caps.
“We right added make stronger for WBTC now not too long within the past, where customers would possibly presumably additionally wrap and unwrap their Bitcoin the utilization of our token swap feature,” says CEO Juntao Zhu. “We’ve played with the understanding of along side BNB and likewise DOGE as successfully nonetheless nothing is planned but as we’re specializing in other feature launches corresponding to explore-to-explore fiat on-ramp, and getting our cell apps out.”
Hodnaut’s rate beat both Celsius and BlockFi for stablecoins by about 2% APY.
Customers would possibly presumably additionally skills the reality that Hodlnaut doesn’t cap charges. As an instance, competitor BlockFi reduces its charges on BTC from 4% to 1.5% after 0.25 BTC, whereas Hodlnaut supplies 6.2% irrespective of the amount.
So, it’s a extra contemporary platform, nonetheless it undoubtedly supplies better charges than its extra established opponents– with a smaller crew and less funding. How does it pull this off?
How Does Hodlnaut Manufacture Money?
Cherish most other crypto hobby accounts, Hodlnaut uses your assets as collateral to give loans to corporate collectors, earning off the variation between the hobby it is a long way going to pay customers and what it charges to give loans to its institutional debtors.
“Now we accept as true with extremely stringent capital requirements moderately than our counterparties,” comments Zhu. “In spite of the total lot, we’re very selective with whom we lend to. We most attention-grabbing lend to corporate entities with right credit rankings and we can confirm this with them through the onboarding route of, and the Mortgage-to-Cost (LTV) Ratio of our loans is in total 70% or decrease.”
The platform also makes money by earning hobby from lending its assets to decentralized protocols.
Are Your Funds Get With Hodlnaut?
Hodlnaut relies entirely in Singapore, a incontrovertible reality that tends to introduce some unfamiliarity to a U.S. audience.
For one, no digital assets in any cryptocurrency hobby account are FDIC insured, so one among the predominant protections for U.S. depositors is entirely absent from this trade at sizable. Singapore also does now not provide FDIC-identical federal security for cryptocurrency accounts.
Your funds on Hodlnaut, or any cryptocurrency platform, are by no blueprint entirely risk-free.
Then again, Hodlnaut takes some steps to mitigate this risk.
Hodlnaut Overview: Security
The platform requires that you plan up 2FA sooner than which you might even kind a withdrawal, which helps preserve accounts obtain and discontinuance unauthorized withdrawals. Hodlnaut uses trade-popular encryption and other security rules to kind dawdle assets and records on its platform are safe.
As of this writing, Hodlnaut has by no blueprint been hacked.
Hodlnaut’s predominant custodian is Fireblocks, a leading digital asset custody solution that employs varied tips on how to kind dawdle the protection of assets. Fireblocks holds assets in a mixture of offline frigid storage and insured hot wallets; all user deposits are by no blueprint within the identical station correct now.
Hodlnaut offers you the chance of procuring insurance protection on your crypto by a partnership with European company Nexus Mutual.
That’s burly, especially within the crypto hobby apartment were deployed or loaned assets are infrequently uninsured if they’re kept in hot wallets. Since these platforms are repeatedly lending and receiving deposits, the funds are in circulation, which makes them very sophisticated to insure. The Hodlnaut insurance protection with Nexus for the time being stands at $22 million and is anticipated to develop as both firms create traction.
Hodlnaut outlines its procedures within the case of a borrower default.
Hodlnaut is certified by the Singapore Fintech Association, which is identified by the Monetary Authority of Singapore. Then again, on the time of this writing Hodlnaut is undergoing a license utility, and aims to become the predominant regulated entity in Singapore’s crypto borrowing and lending apartment.
With over $250M in AUM, Hodlnaut will inevitably accept as true with to present explicit certification in its ability to be responsible with user funds. Because the platform continues to develop, it’s likely we can seek for added inclinations in this apartment.
Hodlnaut Overview: Ease of Use & Buyer service
The platform is for the time being accessible most attention-grabbing on web and intends to liberate an IOS utility in mid-2021.
Reddit evaluations of Hodlnaut have a tendency to skew dawdle for buyer make stronger, citing the promptness of the crew as a particular earnings. Hodlnaut make stronger would possibly presumably additionally be reached by a make stronger stamp or at [email protected]
Hodlnaut maintains an FAQ half on its web living for the decrease-inserting fruit.
Hodlnaut Overview Last Thoughts: Is Hodlnaut Legit?
General, Hodlnaut supplies a blinding aggressive product in an an increasing form of aggressive trade.
On one hand, Hodlnaut is a somewhat contemporary company with a single bootstrapped fundraise based entirely in Singapore. Right here’s a enormously numerous proposition than U.S.-based entirely firms like Celsius and BlockFi, which accept as true with established themselves because the blue-chip of CeFi. That being talked about, Hodlnaut’s business mannequin doesn’t seem inherently riskier than every other crypto hobby account provider.
Then again, some customers would possibly presumably obtain cost within the scrappiness and nimbleness of a extra contemporary extra gentle-footed crew. Because the educational curve for DeFi turns into step by step less steep, platforms like Hodlnaut are positioned to consume on challenges that their extra regulated and established opponents is now not going to be in a plan to. This is able to be advantageous supplied your funds are safe on Hodlnaut, which the cramped time span we have out there signifies they are.
If your be taught merely comes all of the blueprint in which down to APY, Hodlnaut supplies trade-leading charges (6.2% on BTC, 6.7% on ETH, and 10.2% on stablecoins). It supplies above-realistic buyer make stronger and has been proactive against insuring assets, even after they’re deployed.
Hodlnaut also supports coin-to-coin trades and limitless withdrawals at any time (at a price).
At this writing, the platform most attention-grabbing supports six tokens and is most attention-grabbing out there by the gather, nonetheless we’re eager to search around for the blueprint in which Hodlnaut evolves.
