If you’ve been investing in bitcoin and other cryptocurrencies and plan to hold for years to come, most of your digital assets are probably locked away in a hardware wallet or sitting idle on an exchange. Traditionally, there wasn’t much you could do with your stack besides waiting for it to rise in value or try your luck with trading.
A third option is now available — one we know from the world of old-school banking. Everyone is familiar with savings accounts that yield interest in dollars, euros, and pounds, but as we witness global interest rates race closer to zero, especially across Europe where rates are turning negative, our cash deposits are facing increasingly greater risks of losing value.
Partly as a result of that, there’s been a natural growth in supply and demand for interest-bearing cryptocurrency saving accounts. These accounts pay high interest on crypto deposits just like banks used to do on fiats. Sure, a hardware wallet no doubt remains the safest place to store your stash, but this digital way of hiding money under the mattress doesn’t exactly help build additional wealth over time. With a cryptocurrency savings account, the aim is to grow part of your crypto portfolio like you would with a fiat bank.
In another post, I covered the the top crypto interest accounts, but after additional research, I think it’s time to add a new player to the game: Hodlnaut. At Hodlnaut, you can earn up to earn up to 10.5% interest per year on your cryptocurrency holdings, fully secured by Fireblocks’ infrastructure and with optional insurance coverage up to $44 million through Nexus Mutual.
Here are the top takeaways for Hodlnaut:
- Offers weekly interest payment on your cryptocurrencies by lending it to institutional traders (BTC, ETH, UST, USDC, DAI)
- Secures its infrastructure through the leading crypto custody firm Fireblocks
- Lets you swap between cryptocurrencies
- Offers optional insurance for users’ funds through Nexus Mutual with up $6.7 million in coverage
I’ve been observing Hodlnaut for around six months now and watched them make tremendous progress in this short period of time. In this review, I’ll try to give you the full rundown of the company so you can evaluate for yourself if Hodlnaut is worth it or not.
Hodlnaut Review: One-Minute Summary
Hodlnaut is a Singapore-based crypto lending and borrowing platform that allows users to earn up to 10.5% APY on their cryptocurrencies. The company was founded in April 2019 by two Bitcoin maximalists Juntao Zhu and Simon Lee. Hodlnaut is on a self-declared mission to help HODL-ers make the most of their crypto assets through new financial products and services.
- One-minute summary
- Hodlnaut Main Features
- What is Hodlnaut?
- History of Hodlnaut
- Frequently asked questions
- What Does Hodlnaut Offer?
- Hodlnaut Interest Account
- Hodlnaut Loans
- Hodlnaut Account User Guide
- Hodlnaut Affiliate Program
- Hodlnaut Token Swap
- How can I reach Hodlnaut’s customer service?
- Final Take on Hodlnaut
Hodlnaut supports five core assets: BTC, DAI, ETH, USDT, and USDC. As a crypto lending and borrowing platform, Hodlnaut may lend the deposited funds to vetted and established institutions in the form of collateralized loans to generate profits.
Furthermore, Hodlnaut also lends out the assets to decentralized protocols and earns interest from there. The company then takes a small portion of the interest earned from lending and passes the rest on to the users.
At a glance, the Hodlnaut platform is easy to use and perfect for those who wish to get favorable returns on their cryptocurrency easily. Instead of storing the assets in a crypto wallet, customers can avail themselves of an interest rate of 6.2% APY on BTC, 6.7% APY on ETH, and 10.5% APY on DAI, USDC, and USDT. A fast-growing company currently, Hodlnaut has over $250 Million assets under management with a month-on-month growth average of 20%.
Hodlnaut aims to become the first regulated entity in Singapore within the crypto borrowing and lending space and has applied for a license under the Payment Services Act 2019 by the Monetary Authority of Singapore (check the status here). Big techs like Google and Alibaba are on the applicants list, too. The firm is also certified by the Singapore Fintech Association, an accreditation recognized by the MAS (Monetary Authority of Singapore).
The interest rates at Hodlnaut are highly competitive compared to other companies in the crypto lending space, though it charges a small withdrawal fee to its customers. It’s good to note that Hodlnaut has recently integrated with Fireblocks to provide robust security while carrying out the transactions.
Additional features like Token Swap and Address Whitelisting also make it easier for users to keep earning interest in their favorite asset while enjoying the highest security. To entice users even further, Hodlnaut has an affiliate program where users can get 10% commission from interest paid to each successful referral.
Bottom line: That’s essentially all you need to know about Hodlnaut. If you want to take a deeper look at their products and features, read the full review of Hodlnaut below.
Hodlnaut Main Features
|🛍️ Products offered||Hodlnaut Interest Account, VIP Fixed Term Loan, Institutional/Corporate Loans|
|💰 No. of supported cryptocurrencies||5|
|₿ Bitcoin interest rate||6.2% APY|
|💵 Stablecoin interest rate||Up to 10.5% APY|
|🔒 2-Factor Authentication||Yes|
|🛡️ Insurance||$44 million (fluctuates depending on the number of stakes)|
What is Hodlnaut?
Hodlnaut is a cryptocurrency interest-earning platform that helps individual investors get the most out of their digital assets. The term “Hodlnaut” is essentially a combination of the words “Hodl” and “Astronaut.” “Hodl” is a popular slang in the crypto space and is often used to refer to the act of holding the crypto assets instead of selling them.
The platform aims to provide consistent passive income to HODL-ers in terms of interest earned on their funds. Usually, Bitcoin holders are able to make profits from the price increase of the asset. They also wait for the asset value to appreciate so that they can benefit from it. But they can always deposit their crypto assets to earn interest and thus build a passive earning stream. The idea behind Hodlnaut is to help crypto holders earn interest on their holdings and unlock the full value of their crypto assets. Hodlnaut is part of Antler’s portfolio company, a venture capital that backs early-stage startups.
Hodlnaut Pros and Cons
Hodlnaut offers a good range of products for lenders and borrowers. On one the hand, the Hodlnaut Interest Account (HIA) is a great choice for lenders as it offers interest rates on deposits ranging from 6.2% to 10.5%. On the other hand, Hodlnaut is excellent for borrowers who want to obtain a credit credit line with their cryptocurrencies as collateral as it offers some of the lowest rates in the market.
Loans start from only US$50,000, with fixed or open terms, no hidden fees, and 25% to 100% flexible loan-to-value, giving the lender the plenty of room for manoeuvre.
The platform also provides corporate crypto loans to vetted borrowers. You can take out a fixed-term “VIP” loan with additional additional perks if you meet the requirements. You will need to hold your cryptocurrency with Hodlnaut for more than a month, deposit an equivalent of 25 BTC or more, ,and hold the fixed-term balance until the end of the term. If you meet the said requirements, you can earn a higher yield than the Hodlnaut Interest Account.
All in all, Hodlnaut has an intuitive platform, and opening an account is quick and easy. On the downside, Hodlnaut has limited products and only supports five currencies. Moreover, there are no plans to add fiat on-and-off ramps to the platform or additional perks like debit cards.
- Highest interest rates for Bitcoin
- Weekly payouts every Monday
- Dedicated customer support
- Fast signup and no minimum deposit needed
- No lock-in period and funds can be withdrawn at anytime
- Optional insurance through Nexus Mutual
- Network secured and protected by Fireblocks
Things to keep in mind
- Only supports five cryptocurrencies
- Manually-processed withdrawals
- No mobile application yet
- Limited products
History of Hodlnaut
Hodlnaut was founded by Bitcoin maximalists Juntao Zhu and Simon Lee in Singapore in April 2019. In April 2020, Hodlnaut’s total AUM was USD 1 million. But today, Hodlnaut has an AUM of 250 million. The platform has also grown tremendously from over 100 users in 2019 to 5,000+ users today. The team has also grown to 20 headcounts in the Singapore office and in other remote locations throughout Asia.
❓ Frequently Asked Questions
Here are some frequently asked questions about Hodlnaut:
How does Hodlnaut store my funds?
Hodlnaut keeps your funds secured with Fireblocks’ multi-party computation wallet infrastructure. Every time a user signs up with Hodlnaut, they are assigned a unique address by Fireblocks. These deposited funds are then secured with Fireblocks’ wallet infrastructure before it is lent to one of Hodlnaut’s institutional partners.
Is Hodlnaut insured against hacks?
Hodlnaut provides an option of getting an insurance cover of up to the US $44 Million* through Nexus Mutual’s Hodlnaut Custody Cover smart contract at a 2.6% premium. Customers can avail of this to ensure their funds. *The amount fluctuates depending on the number of stakes.
Can you trust your assets with Hodlnaut?
Like with any other investment, all users considering Hodlnaut are encouraged to form their own opinion before investing. It’s a good idea to look through their demo platform as well as the FAQs section to understand the platform better. Hodlnaut also has a dedicated support team and customers can drop an email at [email protected] in case they have any queries.
How does Hodlnaut prevent against loss of funds?
Hodlnaut has very stringent capital requirements of their counterparties. They’re quoted to be very selective about who they lend out to. Only corporate entities with a good credit score are considered, and the Loan-to-Value (LTV) ratio of the loans is usually 70% or lower. For this reason, the risk of default on loans is very low. Moreover, Hodlnaut lends out to more than one counterparty to minimize counterparty risk.
What if one of the borrowers default?
It’s very unlikely for a borrower to default but in case it happens, Hodlnaut may liquidate the borrower’s collateral and repurchase the funds that were borrowed. Moreover, Hodlnaut has a robust legal contract in place and may also take legal action for recovering the funds as required. Nevertheless, if a default happens, Hodlnaut will bear the loss and pay the users from their equity funds.
Does Hodlnaut hold crypto in a custodial or non-custodial wallet?
Hodlnaut receives funds through Fireblocks wallet infrastructure. Hodlnaut has access to funds from the backend, and the funds are either transferred to their custody cold wallets or are lent to the borrowers. Hodlnaut follows a security-first approach because of which they don’t have any hot wallets.
Is Hodlnaut regulated?
Hodlnaut is based in Singapore and the Singapore Law introduced the Payment Services Act on the 28th of January 2020. According to the Act, cryptocurrencies are categorized under “digital payment tokens.” Hodlnaut has applied for a license under the new regime, besides firms like Amazon and Alibaba, and the status of their license can be checked here on the website of the Monetary Authority of Singapore.
Does Hodlnaut have an affiliate program?
Yes, Hodlnaut has an affiliate program by virtue of which you can invite your friends to Hodlnaut by sharing the referral link and earn 10% of your friend’s interest. However, users are eligible to participate in this program only after they pass Hodlnaut’s KYC process.
What Does Hodlnaut Offer?
Hodlnaut allows users to earn favorable interest rates on their cryptocurrency deposits. The deposited funds are loaned to vetted and authorized institutions. Currently, Hodlnaut offers interest on the following crypto assets.
- Bitcoin (BTC)
- Ethereum (ETH)
- Dai (DAI)
- USD Coin (USDC)
- Tether (USDT)
Users don’t have to make any minimum deposit and can withdraw the funds at any time. As for the interest rates, Hodlnaut offers the following annual compounded interest rates (APY) for its supported coins:
- Bitcoin (BTC): 6.2%
- Ethereum (ETH): 6.7%
- Dai (DAI): 10.5%
- USD Coin (USDC): 10.5%
- Tether (USDT): 10.5%
The interest earned depends on the market conditions and the previous month’s revenue as well. Users can earn interest daily, and it is credited to their account every Monday.
Hodlnaut Interest Account
Hodlnaut Interest Account (HIA) allows customers to earn interest on their crypto assets. The company is able to offer high interest rates to its users because it lends out the deposited assets to vetted and established financial institutions that pay an interest rate. The assets are only lent to authorized entities after a thorough background check to ensure timely interest payment. As mentioned before, Hodlnaut takes into account the market conditions and profits from the previous month while offering interest rates. However, ever since its inception in 2019, Hodlnaut has offered consistent interest rates to its customers.
Hodlnaut also lends out the assets to decentralized protocols. The company retains a small portion of the interest received from lending and disperses the rest to its users. Since partners have varying business requirements, Hodlnaut customizes the loans to best suit their needs. For HIA, Hodlnaut is currently accepting deposits in BTC, DAI, ETH, USDC, and USDT.
It should be noted that the weekly interest calculation also takes into account the compounding effect. To know exactly how much interest you will earn, you can check the interest calculator available on Hodlnaut’s homepage. It is a pretty convenient way of finding out what you can expect when you HODL your crypto for a certain duration.
How is the Interest Paid?
Hodlnaut pays interest in-kind, which means that users will receive interest in the same asset they have deposited. The interest is accrued at the end of each day and is directly deposited in the user’s Hodlnaut account. What I liked a lot is that there isn’t any waiting period before you earn interest on your crypto with Hodlnaut. You’ll start earning interest immediately after depositing the crypto into your Hodlnaut account. It’s credited to the user’s account each Monday, 5 PM (GMT +8).
Although the platform has been offering consistent interest rates for a while now, it has recently increased its stablecoin interest rates. Previously, Hodlnaut was offering 8.3% APY for stablecoins which is now increased to 10.5%. The platform supports three stablecoins as of now, namely DAI, USDC, and USDT.
The current interest rates can be found on Hodlnaut’s official website and its social media pages.
How to open an Hodlnaut Interest Account?
Signing up for Hodlnaut Interest Account is very easy and takes only a couple of minutes. Visit https://app.hodlnaut.com/signup to go to the signup page. You will have to key in your contact information and proceed with Hodlnaut’s KYC process. Users will receive an email confirmation after their Hodlnaut Interest Account is activated. I’ve listed the steps you need to follow for opening an account further in the review. Before that, let’s look at other products of Hodlnaut.
Besides HIA, Hodlnaut also offers a VIP fixed-term loan to its customers. Elementally, a fixed deposit account with Hodlnaut helps users earn the highest interest rates while depositing their assets for a fixed duration.
Customers need to meet the following requirements in order to be eligible for the Hodlnaut VIP fixed-term loan.
- Lock in their cryptocurrency with Hodlnaut for either 1, 3, or 6 months to earn a higher yield.
- Deposit an equivalent of 25 BTC or more in a single asset class.
- The deposited funds need to be held till the term ends and cannot be used as collateral during the said duration.
Those who meet the requirements mentioned above qualify for availing of the VIP fixed-term loan. To know about the current interest rates for this product, customers are advised to connect with the Hodlnaut team.
On a side note, the interest earned will depend on the amount deposited as well as the rate of interest.
How is the VIP fixed-term loan different from HIA?
The interest is compounded daily for both HIA and Hodlnaut fixed-term loans. However, the interest accrued with a fixed-term loan is paid in a single payout at the end of the term. With VIP fixed-term loans, users also get higher interest rates. Given the fact that Hodlnaut already offers a promising 6.2% APY for BTC, even higher interest rates for the Fixed-term loan are a good deal.
Additionally, it’s a stable and profitable option with good returns. What Iliked the most about this product is that it comes with a dedicated relationship manager who handles your account. Thus, Hodlnaut’s VIP fixed-term loan is a good mix of high-interest rates and customized support.
The product was designed in alignment with Hodlnaut’s mission to provide the best interest rates to customers. Moreover, with Hodlnaut’s current AUM of $250M, the product also boosts the stability and liquidity of the assets. Should you be interested in opting for a VIP fixed-term loan, you may drop their team an email to connect with the relationship manager.
Hodlnaut also provides cryptocurrency loans to established financial institutions. The minimum borrowing amount for the same is $50,000. These loans are open for at least three months, and the loan-to-value ratio starts from 25% and goes up to 100%. Hodlnaut is the counter-party for these institutional loans.
Hodlnaut Account User Guide
I found the overall sign-up process straightforward, and here’s a guide that will kick-start your interest-earning journey with Hodlnaut. The steps here outline how you can withdraw and deposit coins, check your transaction history and account balance. They also help you understand Hodlnaut’s latest additions to the platform: Token Swap feature and Address Whitelisting feature. So without any further ado, let’s get right into it.
Create your Hodlnaut Account
Visit Hodlnaut and click on the top-right icon to log in. If you’re new to the platform, you need to first sign-up by entering your contact information and passing the captcha test. If you already have an account, key in your email address and password to log in.
Your Hodlnaut account will be set up within a couple of minutes.
Account Overview, Balance, and Transactions
Once you log in, go to “My Account” on the top left. You can see the following information: Total Account Value, Total Interest Paid, Pending Interest Payout, as well as Next Payout Date under Account Overview.
Although the information is displayed in BTC, you can also view it in BTC, ETH, SGD, and USD. Simply go to the drop-down menu on the right and select the asset.
Here is a quick explanation of each term that you see on the Account Overview tab.
- Total Account Value: The total value that you currently have in your Hodlnaut account.
- Total Interest Paid: Cumulative interest which has been paid to date.
- Pending Interest Payout: The estimated pending interest which you will receive on the next payout date.
- Next Payout Date: This is the date on which you receive your weekly interest payment.
Hodlnaut shows the “Pending Interest Payout” in real-time, meaning you can see exactly how much interest you are earning by the second, and it increases gradually.
In this section, you can see an overview of your balances, as the name suggests. It includes details like asset name, interest rates, pending payout, available balance, and value. It is worth noting that the Annual Percentage Yield (APY) considers compound interest, but the Annual Percentage Rate (APR) does not.
You can view the balance overview in ascending or descending order. All you need to do is to click on the column heading of the respective column.
This section shows you a list of all transactions done so far. Each transaction is described on the left, and it has details like the type of asset, time of the transaction, and date of transaction. On the right, you can view the corresponding amount for that transaction.
In the value column, the crypto mentioned in the bracket is essentially the currency for which your transaction is visible. You can always choose a different currency from the list of supported assets.
Download your transaction history from Hodlnaut
Hodlnaut also allows you to download the transaction history by clicking the download icon shown on the top right. The transaction history can then be exported in a .CSV format which will be saved on your computer.
How to deposit or withdraw crypto with Hodlnaut
After clicking the Deposit/Withdrawal tab, you can see the deposit section and withdrawal section. Let us see how each section works.
How to deposit crypto with Hodlnaut?
There are two ways you can deposit crypto funds to the Hodlnaut platform. The first is to copy and paste the wallet address from where you will be sending crypto. Otherwise, you can scan the QR code, which has your address from the wallet or exchange to carry out the transfer. To choose the asset type you would like to deposit, simply use the drop-down on the left.
It’s imperative to verify your account while making the deposit. This is also why Hodlnaut asks its customers to enable two-factor authentication. Enabling 2 FA increases the security of your deposited assets.
How to withdraw funds from Hodlnaut?
You can withdraw funds very easily on the Hodlnaut platform. To begin, choose the crypto of your choice from the drop-down menu on the left. Enter the name of the recipient, the amount to be withdrawn, and the wallet address where you would like to withdraw.
Hodlnaut has recently added a Withdrawal Whitelisting feature to their platform. This feature helps you whitelist certain addresses to which you can securely withdraw your crypto. Every address you add to this list will first be verified by the Hodlnaut team (it usually takes 48 hours). After the verification is done, you can securely withdraw funds to the addresses that you have whitelisted.
Hodlnaut income statements
To view your previously income and interest statements on Hodlnaut, click the statements tab. Select the cryptocurrency for which you would like to view the interest statement from the left. Click on the date range to select the date bracket for which you will like to view the statement. You can see details like the date, balance, interest rate (APR), and interest earned. The bottom right corner is where you will find the total amount.
Hodlnaut Affiliate Program
Hodlnaut offers an interesting affiliate program that is visible on the “Affiliate” tab on the platform. It allows you to earn 10% from your friend’s interest every time you refer Hodlnaut to your friends.
Moreover, the person you refer Hodlnaut to will also get a free bonus of US$20 if they make the first deposit of $1000 in equivalent. The bonus will be given in the same asset deposited. It’s very easy to share the referral link. You simply have to copy it from the interface and send it to your friends.
To know how much you have earned with the affiliate program, go to the top right button. Here, you can also see how many friends you have referred so far.
Hodlnaut Token Swap
Hodlnaut has recently introduced their “Token Swap” feature. It essentially allows the users to trade between the supported assets within the Hodlnaut platform. This feature unlocks the possibility of earning interest in the asset of the user’s choice. I found this feature to be very easy to use. Simply choose the tokens which you would like to trade from the drop-down list and key in the amount you want to pay.
As you type the amount you wish to pay, you can view the amount you will receive in the other token. Once you enter the amount, click on “Review Quote” to review all the details and place an order. This step needs to be done within 30 seconds for the swap to be successful.
How can I reach Hodlnaut’s customer service?
Holdnaut has prompt customer support via emails and the live chat. However, their business hours are from 10 am to 7 pm Singapore time, post which the support may be delayed. However, I received answers to most of my questions within one business day. On the downside, the support needs to be more optimized for international customers from different time zones.
Final Take on Hodlnaut
After carefully looking into its features and products, I think Hodlnaut is a good addition for those who wish to make the most of their cryptocurrencies. Its Token Swap feature gives the customers a chance to earn interest in their favorite asset. Hodlnaut has taken various measures to ensure that the deposited funds are secured. For instance, the two-factor authentication as well as Fireblocks integration. Moreover, users can withdraw funds to only whitelisted addresses thus preventing potential hacks.
With the competitive interest rates and efficient customer support, Hodlnaut is an excellent choice for long-term cryptocurrency investors.