Notice: Binance Lending was migrated to Binance Earn. Please, refer to Your Guide to Binance Earn for an updated guide.
What is Binance Lending and how does it work?
Binance Lending works with a first-come, first-served basis, meaning that whoever gets their funds subscribed to a product first gets to earn the interest. The interest is distributed every day for Flexible Deposits, or on the redemption date for Fixed Deposits.
How to use Binance Lending
- Log in to your Binance account. If you don’t have an account, register and create one in minutes.
- Hover on Earn on the top bar, and click on Lending; or go to the Binance Lending page with this link.
- Click on Products.
- Select the type of lending product you’d like to use: Flexible Deposits or Fixed Deposits.
- Select the product you’d like to subscribe your crypto to, and click on Subscribe. You’re done!
A Fixed Deposit lending product means that you subscribe your funds for a predetermined amount of time and interest. This option is better suited to you if you’re a long-term investor, committed to holding your crypto. Since you’re holding for the long term, why not earn interest at the same time!
Note that if you subscribe your crypto to a Fixed Deposit product, you won’t be able to access your funds for the duration of the subscription. However, if you have subscribed to one but really need to access your funds, you can transfer a portion of them to Flexible Deposits.
You subscribe to a Fixed Deposit product in specific amounts called lots. Each lot represents a set amount of cryptocurrencies that will earn interest based on a predefined rate. Also, to avoid a few large holders buying up the entire pool, there’s an individual cap on each account for the number of lots they can buy.
For Fixed Deposits, you’ll see the following information on the platform:
- Annualized Interest Rate – The percentage return you’d get if you subscribed to this product for 12 months.
- Duration - The duration for which your funds will be locked and earning interest.
- Lot Size - The amount of crypto that one lot contains. For example, 1 lot = 100 BUSD.
- Maximum Subscription - The maximum amount an individual account can buy from this product.
- Subscription Starts – The date when you can start subscribing funds to this product.
- Subscription Ends - The date when the subscription period ends. Note that the subscription period might end earlier than this date if the total cap is filled.
- Value Date - The date when your funds start earning interest.
- Redemption Date - The date when your funds are unlocked, and your interest is paid out.
Flexible Deposits are essentially your crypto savings account. You subscribe your funds to earn interest with the flexibility to redeem them at any time. As such, Flexible Deposits will yield smaller returns than Fixed Deposits.
It’s important to note that when you subscribe your funds to a Flexible Deposit product, they are locked for that day. This means that they won’t be accruing interest, and you won't be able to withdraw them until the following day at the earliest. From the day after your subscription, your funds are unlocked, earning interest, and redeemable at any point. This is to prevent the system from being exploited.
The interest for Flexible Deposit products is distributed daily. Please note that Flexible Deposit products are closed for subscription from 23:50-00:10 UTC. The subscription quotas are also reset during this time. As such, if the daily quota for a lending product is full, your best bet is trying to get in early on the next day.