Only now, crypto investors who plan to hold their assets for some years have kept their cryptocurrencies locked up in a hardware wallet or sitting idle on any cryptocurrency exchange, but not anymore. Hodlnaut was established as a cryptocurrency lending and borrowing platform where investors can use cryptocurrency assets like savings accounts and earn interest to break the norms.
Very Good Reputation
Very Good Reputation
Very Good Reputation
As such, cryptocurrency savings accounts pay quite a high or more interest in crypto deposits as traditional banks do on fiat currencies. In this Hodlnaut review, all the important aspects of the exchange will help traders accept the platform as a crypto savings scheme.
|Listed Cryptocurrencies||BTC, DAI, ETH, USDC, USDT, and WBTC|
|Supported Fiat Currencies||Yes|
|Trading Fees||Depends on Cryptocurrency|
|Withdrawal Fees||Depends on Cryptocurrency|
|APY||Up to 12.73%|
|App||iOS App Available, Android Launching Soon|
|Customer Service/Support||Live chat, Email, Telegram, Raise a Ticket & FAQ Section|
Quick Overview of Hodlnaut
- Hodlnaut is a Singapore-based cryptocurrency borrowing and lending platform founded in April 2019.
- It allows users to earn up to a maximum of 10.5% APY on their crypto holdings.
- Hodlnaut support six core assets – BTC, DAI, ETH, USDC, USDT, and WBTC.
- It is certified under the Singapore Fintech Association and a MAS (Monetary Authority of Singapore) recognized accreditation.
- Recently integrated with Fireblocks to ensure robust security of clients’ assets.
What is Hodlnaut?
Hodlnaut is a leading crypto lending platform based in Singapore. It allows its investors (who hold their cryptocurrency assets on the platform) to lend their cryptocurrencies and stablecoins and earn high-interest rates therefrom. The platform offers a total of 6 lendable crypto coins like Bitcoin (BTC), Ethereum (ETH), and Wrapped Bitcoin (WBTC), and stablecoins like DAI (DAI), USD Coin (USDC), and Tether (USDT).
Hodlnaut is available in almost all countries in the world, including the United States. Interests on cryptocurrency holdings are generated automatically depending on the crypto that a user holds in his account. The interests are paid out weekly every Monday. Hodlnaut also provides a mobile app for android and apple users.
Hodlnaut Platform Interface
How Does Hodlnaut Work?
Hodlnaut works effortlessly and straightforwardly. Users just need to open an account on the platform, deposit their preferred crypto coins, and it will automatically start generating weekly crypto interest dividends.
How Does Hodlnaut Work?
History of Hodlnaut
Hodlnaut was founded in Singapore by two leading Bitcoin enthusiasts named Juntao Zhu and Simon Lee in April 2019. Juntao Zhu was from the finance industry (Credit Suisse), and Simon Lee had a mechanical engineering degree.
Before launching the Hodlnaut exchange, both the founders were active participants of Antler (a Venture Capitalists fund startup & company builder) as ‘Entrepreneurs in Residence.’ The fund got them 100k funding to build Hodlnaut, and eventually, Hodlnaut was created in 2019.
The term “Hodlnaut” is derived from the combination of 2 words, “Hodl,” which means to hold crypto asset or digital assets instead of selling them, and “naut,” meaning astronaut. Just one year after its launch, in April 2020, Hodlnaut’s total AUM stood at USD 1 million, which has now crossed over AUM of 250 million. From just 100 users during its launch, the platform now boasts over 5,000 active users taking crypto borrowing and lending seriously.
Key Features of Hodlnaut
Hodlnaut review offers you the following core features to its clients:-
- Hodlnaut supports lending services of leading coins like Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Dai (DAI), and Tether (USDT).
- There are provisions for receiving weekly payouts every Monday at 5 PM (GMT 8+).
- Interest rates on a Hodlnaut loan are decided according to the prevailing market conditions (demand) and the previous month’s earnings.
- Interest is paid in the same crypto coins for which the users make the deposits.
- There is no minimum deposit or lock-in period, and thus, users can withdraw fund at any time.
- The Hodlnaut website provides an interest calculator to help customers calculate the interest they will receive by entering the relevant crypto asset and the number of days.
- The platform offers a unique insurance cover called the Nexus Mutual Custody Cover.
Is Hodlnaut Regulated?
Hodlnaut is Singapore-based and operates under the Singapore Law, which introduced the Payment Services Act on January 28th, 2020. The Payment Services Act categorizes cryptocurrencies as “digital payment tokens.” Moreover, the company has applied for a license under the MAS (Monetary Authority of Singapore), expected to be approved soon.
The Platform offers the following loans to its users:-
Fixed Term Loan at Hodlnaut
The platform offers a VIP fixed-term loan to institutional and corporate users; individuals are not eligible for VIP fixed-term loans. The Hodlnaut fixed deposit account helps users earn the maximum interest rates while depositing their cryptocurrency assets for a fixed duration. The Hodlnaut fixed-term loan is similar to a traditional bank fixed-term loan’; instead of cash, customers can deposit their crypto assets with Hodlnaut for a set period, thereby attracting a much higher yield.
The minimum deposit amount that customers need to comply with is 100 BTC or its equivalent amount in ETH, Tether, DAI, or USDC, and the minimum lock-in period is one month. Institutional investors or companies who opt for the Hodlnaut Fixed-Term loan receive a dedicated manager who will handle their account on their behalf.
However, to avail of this Hodlnaut VIP fixed-term loan, customers need to meet the following criteria:-
- The lock-in period of their cryptocurrency assets at Hodlnaut should be either 1, 3, or 6 months for earning a higher yield.
- Users should deposit an equivalent amount of 25 BTC or more in a single crypto asset class.
- The deposited funds should be held till the term ends, during which they cannot be used even as collateral.
- This is to be noted that the interest earned depends on the amount deposited and the interest rates.
Fixed Term Loan at Hodlnaut
Institutional Loans Features
It also provides institutional loans, which is crypto loan that is lent to established financial institutions. The institutional loans features offered by the platform are as follows:-
- The minimum borrowing amount is USD 50,000.
- The loan-to-value ratio starts from 25% and can go up as high as 100%.
- Users can choose between open terms or for at least 3months.
- Lowest market rates.
- No hidden fees.
- It acts as a counterparty for all institutional loans Hodlnaut offers.
Cryptocurrency investors can use these institutional loans for their business needs or for diversifying their crypto portfolios. Moreover, these asset loans have a rather complex structure, and the terms and conditions vary depending on the lenders.
What Do Hodlnaut Offers?
It allows users to earn favorable interest rates on their crypto holdings onto the platform; the deposited funds are lent to authorized institutions that pay huge interest. Currently, the Hodlnaut review platform offers interest in the following cryptocurrencies:-
- Bitcoin (BTC)
- Dai (DAI)
- Ethereum (ETH)
- Tether (USDT)
- USD Coin (USDC)
No minimum deposit is required to avail of the crypto loans, and users can withdraw their funds at any time. As for the interest rates calculated on a compound interest basis, it offers the following annual interest rates (APY) on its supported crypto asset or digital assets:-
- For Bitcoin (BTC): 6.2%
- For Dai (DAI): 10.5%
- For Ethereum (ETH): 6.7%
- Tether (USDT): 10.5%
- For USD Coin (USDC): 10.5%
Users also can earn interest daily, and the entire amount is credited to their accounts every Monday. Apart from this, if you want to know more about Bitcoin loans, and how it works, you can read here to learn more.
Hodlnaut Review: Pros and Cons
|Provides high interest.||Crypto loans are available only for institutions and not for individual traders.|
|No minimum deposits or lock-in period.||Does not support fiat currency deposits.|
|User-friendly interface.||Supports limited cryptocurrencies.|
Sign Up Process of Hodlnaut Account
The sign-up process of the platform is very simple. Users just need to visit the platform’s official website to open an account. Users need to complete the KYC (know your customer) verification to access all the platform’s features for account creation.
Hodlnaut Sign Up Process
Hodlnaut Interest Account
Hodlnaut Interest Account (HIA) is another innovative platform that allows users to earn interest on their crypto holdings. The company lends out its deposited assets to established financial institutions that pay a very high interest rate as a distinctive feature.
However, after a thorough background check for account users, the company lends out assets to authorized entities (collateralized loans) to ensure timely payment of interests. While offering the interest rates, the company considers the previous month’s profits and the prevailing market conditions. Therefore, the platform has provided a consistent interest rate to its users ever since its inception in 2019.
The Hodlnaut exchange also lends out its assets to decentralized protocols. For this, the platform retains a small percentage of the interest received from lending before dispersing the remaining to its users. The platform also customizes the loans according to the varying needs of its clients. Currently Hodlnaut support BTC, ETH, USDC, DAI, and USDT for the Hodlnaut Interest Account (HIA).
Moreover, the platform provides a unique interest calculator on its homepage to help users calculate how much interest they can earn on the HIA (Hodlnaut Interest Account) when they ‘HODL’ their crypto coins for a certain duration.
As per the Hodlnaut review, there are two types of fees that the users need to incur for using this platform services:-
Blockchain Transaction Fees
Blockchain transaction fees are those fees that are paid to the miners when any kind of transfer is made on the Blockchain. The blockchain fees are automatically deducted from the user’s best crypto wallet whenever they deposit assets on Hodlnaut. However, when users withdraw their funds from the platform back to their crypto wallet, The platform charges a fee for the transfer for covering up their costs. However, the platform does not charge anything for deposits made or for swapping tokens.
Interest is charged by the platform exclusively on withdrawals that can be adjusted according to the prevailing blockchain market conditions. To get more insight into the fee structure of the platform click here.
Hodlnut Deposit and Withdrawal
The Platform offers the following deposit and withdrawal options to its users:-
Hodlnaut does not support fiat deposits. Users can deposit cryptocurrency assets into their platform account in the following two ways:-
- Copy and paste the preferred Hodlnaut crypto wallet address into the wallet or exchange the user wishes to send crypto.
- Or, users can simply scan the QR code of the wallet address, and then by using the drop-down menu, they can quickly deposit their preferred cryptocurrency. Also, Hodlnaut does not support fiat deposits.
For withdrawing funds from the Hodlnaut account, users first need to choose their preferred cryptocurrencies from the drop-down box available on the left-hand corner of the website. If the wallet address is already added, users can just select the coins they wish to withdraw. Otherwise, they must manually enter the recipient’s name, wallet address to which they want to send the money, and the amount they wish to withdraw. However, there are withdrawal fees and a withdrawal limit of 100 BTC per day.
How to Earn Interest in Hodlnaut?
The platform dashboard displays all the supported assets listed on the platform along with their respective interest rates. Here are steps listed that the users need to follow to start earning interest on the platform:-
Select the Preferred Asset to Start Lending
When the user knows which cryptocurrency asset he would like to deposit on, he can click on the “Transfer” tab at the top of the page, which will open the list of supported crypto assets on the platform. After the selection, users can select anyone from the list to start lending and view their respective wallet deposit address.
Copy the Deposit Address
Users are then required to copy their deposit address and be directed to their Ethereum wallet or bitcoin wallet accordingly to initiate the transfer. Alternatively, users can also store their crypto-asset with another cryptocurrency exchange. They can request a withdrawal to the platform deposit address, and the funds will be directly credited to that respective address within a few hours.
Wait Until Confirmation Is Received
It should be noted that the Blockchain network settles all the deposits, and Hodlnaut requires a specified number of block confirmations before it credits the account of any particular user. For example, Holdnaut involves companies with 6 confirmations for Bitcoin deposits, whereas on the other hand, for Ethereum assets like USDC or DAI, it requires more than 30 confirmations. Therefore, users need to wait until their deposits are confirmed.
Automatically Start Earning Interest
As soon as an account is successfully credited, the platform sends an e-mail to that particular user, and the user automatically starts earning interest from that point in time.
What Are the Risks of Using Hodlnaut?
For cryptocurrencies investment, there always lies a trade-off between risks associated and rewards earned. There are four risks associated with using Hodlnaut services, which it covers in the reviews and are:-
Like any other financial service provider that stores clients’ assets are susceptible to hacking risks. Clients’ funds could get stolen from the deposited wallets on the platform or at the time of lending out funds to the borrowers. However, Hodlnaut employs all possible security measures to protect clients’ funds; the platform stores them in multi-signature wallets requiring multiple parties’ consent to approve a transfer. The wallet protection is also provided by one of the leading digital asset security companies called BitGo.
Change of Legal Situation
As the platform is still in its infancy stages, the laws are always subject to change considering Singapore (where Hodlnaut is located) quite welcoming to cryptocurrencies. The regulations may change if other countries where more Hodlnauts borrowers are located introduce less favorable rules for cryptocurrency loans borrow and lending. In that case, Singapore also has to impose certain restrictions to cope up with the environment.
Companies or institutional investors borrowing from Hodlnaut could default on their loans. To combat this risk, the Hodlnaut team checks the credibility and risk profile of the borrowers before lending, and the collateralization of the loans is also based on this. However, there is no information about the specified collateralization ratio and the particular credit score ratio required on the platform.
Holding on to the Dollar-pegged Value
The supported assets on the Hodlnaut are always subject to the unique risk of holding on to their dollar-pegged value.
Privacy & Security
As for the security, no Hodlnaut reviews reports of any hacks experienced on the platform. The platform uses top-notch industry-standard encryption measures and other safety regulations to protect its clients’ assets and information. Hodlnaut also requires its users to set up 2FA before withdrawing from the platform, keeping the customers’ accounts secure from unauthorized withdrawals.
Moreover, Hodlnaut’s primary custodian is Fireblocks, a leading digital asset custody solutions provider that employs various hi-tech security methods to protect clients’ assets. As such, Fireblocks holds investments in a combination of offline cold storage and online hot wallets, which means that all the deposits are never stored in the same place together at a time.
Hodlnaut also allows its users to purchase insurance covers on their cryptocurrency holdings via a strategic partnership with a European company called Nexus Mutual. The Hodlnaut insurance cover with Nexus stands at $22 million. As for its regulation and certifications, Hodlnaut is certified by the Singapore Fintech Association, recognized by the MAS. Hodlnaut also seeks a license application to become Singapore’s first-ever regulated crypto borrowing and lending entity.
This Hodlnaut review helps customers so they can access various guides available on the website related to the platform’s multiple operations and basic features. The website also provides informative articles with deeper insights into broader digital currency topics like blockchain, centralized or decentralized finances, and cryptocurrency security.
Customers who cannot find adequate information on the Hodlnaut website can reach out to the customer service/support team via live chat, email, or Telegram. There is also a dedicated FAQ page to help users troubleshoot their issues like account setup or 2FA (two-factor authentication security) for more information.
Moreover, customers can also raise a ticket referring to any matter related to cryptocurrency borrowing and lending on the platform. A ticket submitted should be accompanied by standard information about the user, like name, email address, and the query’s description. According to the various Hodlnaut reviews, the ticket is solved within 24 hours. Also, Hodlnaut provides mobile app services for iOS and Android users.
Hodlnaut Customer Support
Hodlnaut Review: Conclusion
Thus as per the Hodlnaut review, in totality, Hodlnaut appears to be a safe crypto lending and borrowing platform that urges customers to lend their crypto holdings and earn high APY instead of storing them in a crypto wallet until the right opportunity comes. Currently, Hodlnaut is amongst the fastest growing companies with over $250 Million AUM (assets under management) with a month-on-month growth average of more than 20%.
Where Is Hodlnaut Located?
Hodlnaut is one of the leading cryptocurrency borrowing and lending platforms based in Singapore.
How Does Hodlnaut Store My Funds?
Hodlnaut secures the funds with Fireblocks, which is a multi-party computation wallet infrastructure. Every time a user signs up with the Hodlnaut exchange, Fireblocks assigns them a unique address. Their deposited funds are then secured with the wallet infrastructure of Fireblocks before they are lent to any of Hodlnaut’s institutional investors.
Does Hodlnaut Have an Affiliate Program?
Yes, Hodlnaut offers an affiliate program that can be viewed on its Affiliate tab. It allows users to earn 10% from their friend’s interest every time they refer Hodlnaut to their friends. Moreover, the person to whom the Hodlnaut link is referred also gets a free bonus of US$20 when they make their first deposit of $1000, or it is equivalent.
Does Hodlnaut Hold Crypto in a Custodial or Non-custodial Wallet?
Hodlnaut receives deposits from users through its in-built Fireblocks wallet infrastructure that allows the company to access the deposited funds from the backend. The funds can either be transferred to the user’s custodial cold wallets or lent to the institutional borrowers. There are no provisions for hot wallets at Hodlnaut due to security restrictions.
How to Deposit Crypto With Hodlnaut?
There are two ways to deposit cryptocurrencies to the platform. The first is to copy and paste the wallet address from where the crypto funds will be sent. The second one is to scan the QR code, which has the user’s wallet address for executing the transfer.
Does Hodlnaut Have an App?
Currently, it has an iOS app, and the android app will be launching soon.