The strategic partnership also paves way for LTC holders to lend their crypto at attractive interest rates, comparable to several decentralized finance (DeFi) solutions on Ethereum.
To gain from the interest program, a Litecoin holder should freeze his holdings for at least six months. Monthly interest payments will be made either in fiat or cryptocurrency.
Bitcoin.com, BitBuy and Uphold – other associates of Cred – will aid the credit procedure. Alan Austin, director at Litecoin Foundation, elaborated that the collaboration offers a crucial real world use scenario for Litecoin:
“Strong use cases should be one of the most important considerations when evaluating cryptocurrency. In addition to Litecoin’s reliability, use for payments and excellent liquidity, the ability to earn interest at attractive rates through Cred’s platform further strengthens this use case.”
A portion of the funds from the joint collaboration will be utilized to back Litecoin advancement. The development has taken place amidst recent funding requests, with Litecoin Founder Charlie Lee suggesting a voluntary 1% donation to back the foundation’s operation.
Cred operates a worldwide cryptocurrency focused lending and borrowing platform. The company intends to establish an international network for gaining access to credit and retaining an international credit history, utilizing the LBA utility token to offer interest rate premiums. Cred was founded by ex-PayPal executive Dan Schatt.