The digital asset firm Binance introduced a new borrowable asset called CAKE on its Binance Loans platform. Along with the new entry, Binance is also promoting lowered interest rates.
This reduction in interest rates applies to all digital currencies operating on Binance’s platform. These include cryptocurrencies like $BUSD (Binance coin), $BTC (Bitcoin) and $ETH (Ethereum). In addition, the crypto company has added a new borrowable asset in the name of CAKE.
The promotion of lowered interest rates is set to last till 27 July, 2022.
The company off-shoot, Binance Loans, provides a variety of loan options. They support digital assets, toggle interest rates, manage collateral assets and set the maximum limits for loan.
The decision to change the rate of interest is solely in Binance’s hands. They can do so at will without any direct or legal repercussions. The term of loan usually ranges from 7, 14, 90, 30 and 180 days. How much interest you pay on the loan depends on the number of hours you borrow it. Repaying early does not subject you to any additional fee.
New Promotion and Asset
The new promotion campaign of lowered interest rate began in the month of March, this year. In addition to reduced rates, Binance is also offering NFT Mystery boxes as reward. Any investor, new or old, can participate in the promotion events.
On the other hand, the new asset CAKE (PancakeSwap) is a DEX (decentralized exchange) which runs on the Smart Chain platform of Binance. The asset can be used for transactions, trading and mining.