According to a press release published on February 10, the Litecoin Foundation will officially partner up with Cred in an effort to finally offer users interest on Litecoin (LTC) collateral. Cred customers, on the other hand, can secure their coins with the provider to have the chance of earning up to 10% yearly percentage rate.
Cred is a cryptocurrency-based platform that deals with lending and borrowing digital currencies. It was founded Dan Schatt, a former executive of PayPal. Its mission is to provide a global network that can be used for accessing credit and upholding an extensive credit history via the LBA utility token to provide attractive interest rates.
This recent tactical joint venture will enable LTC holders to lend their digital currency at favorable rates. This is somewhat similar to the various decentralized finance (DeFi) solutions provided by Ethereum. However, only those who would commit to the six-month requirement, and those who would pay the monthly interests payments in crypto or fiat, would be able to enjoy the benefits.
However, it is not only Litecoin that will benefit from this recent partnership. The other current partners of Cred, for example, Bitcoin.com, BitBuy, and Uphold, could also facilitate the process of crediting.
The director of Litecoin Foundation, Alan Austin, adds light to this development. He said that their decision to partner up with Cred could add an important use case for the benefit of their company. He added that the ability to get interest at impressive rates through the Cred platform on top of their already excellent reliability and liquidity would further strengthen their brand and reputation in the industry.
Notably, a portion of the funds from this joint initiative will go to the development of Litecoin. It is worth mentioning that the firm is currently amidst countless funding inquiries wherein Charlie Lee, its founder, proposed a voluntary 1% donation in order to support the foundation’s cause.