Earn on Stablecoins is a new feature within our Bitpanda Earn product. This article explains everything you need to know about it.
What is Earn on Stablecoins?
Earn on Stablecoins lets you earn rewards on your stablecoins. By lending your selected stablecoins to Bitpanda, you can receive weekly rewards.
When you participate in Earn on Stablecoins, you temporarily transfer ownership of your crypto-assets to Bitpanda under this title transfer arrangement. During this time, Bitpanda becomes the legal owner of the assets. In return, Bitpanda commits to returning the same quantity and type of crypto-assets (or their equivalent value) when you redeem them.
Please note that this means your assets are no longer held in your custody, and you become an unsecured creditor. In the event of Bitpanda’s insolvency, there is a risk that you could lose part or all of your assets.
Information Summary
Bitpanda Earn on Stablecoins is available in all countries except Austria.
Bitpanda does not provide any tax or investment advice. Please speak with your financial advisor.
You can ask to withdraw your loaned stablecoins anytime, but a lock-in period of 14 days will be observed. Rewards are still being distributed during this period.
A fixed reward of 3% and a variable reward given by Bitpanda, that can be adjusted every 14 days.
EURCV and USDC are available in Earn section.
How to use Earn on Stablecoins?
Note: you should hold USDC or EURCV in your Bitpanda wallet to be able to use this functionnality.
- Go to the Earn section and select Earn on Stablecoins.
- Choose the amount you want to lend.
- Accept the dedicated Earn Terms & Conditions and confirm the transaction.
Rewards
Base rewards: Fixed 3%, will be given under all circumstances.
Bonus rewards: Will be given at Bitpanda’s discretion, depending on market conditions
Rewards can go up to 7% APY.