Litecoin Foundation has decided to take an important step towards its promotion by partnering up with a company called Cred. That will allow them to offer LTC collateral interest, as announced in the official press release by the foundation. All customers of Cred will have an opportunity to lock their cryptos with the provider so that they can earn an annual percentage rate that can go up to 10%.
This strategic partnership, therefore, provided a huge benefit for LTC holders. They will be able to lend LTC at very lucrative rates. Processes similar to this one have already been adopted by several decentralised finance projects operating on Ethereum. To have any benefit from the interest, users need to make a commitment that’s at least six months long. Their monthly interest payments will be paid in either crypto or fiat currencies.
The foundation is not the only Cred partner at the moment. Cred already operates with partners such as BitBuy, Uphold, and Bitcoin.com.
The Director of Litecoin Foundation, Alan Austin, stated that the partnership with Cred added “an important use case for Litecoin”. He noted that use cases should have been taken into account in the process of evaluating cryptocurrencies and that Cred further “strengthened” use cases related to Litecoin. Litecoin already has excellent liquidity, and Cred will now make it possible for LTC owners to “earn interest at attractive rates”.
This partnership has a bigger purpose than just making a profit. Namely, one part of the funds earned as a result of the joint effort will be used for the further development of Litecoin. The truth is that LTC is currently looking for ways to fund further development. One of the things Charlie Lee, the creator of Litecoin, proposed was that miners make a 1% donation to the development.
Cred is a platform for lending and borrowing money with an interesting twist — it’s focused mainly on cryptocurrencies. The goal of Cred is to create a network that would be accessible worldwide and where it would be possible to access credit and maintain a global credit history. That could be achieved with the introduction of the LBA utility token that would be used for providing interest rate premiums.
The company was founded by Dan Schatt, a man known in the finance world as a former executive of PayPal — the most popular e-wallet in the world right now.
Litecoin Foundation is a non-profit organisation that has one goal in mind — the promotion and advancement of blockchain technology. However, one of the main ways to promote the technology is through the cryptocurrency the foundation is based on — Litecoin.
Many crypto lovers like Litecoin and its potential. In fact, getting started with Litecoin is easy and the crypto is regarded as one of the best alternatives to Bitcoin, although it’s not as popular as digital gold.
The foundation has operated successfully since 2011 and is led by Charlie Lee, the creator of Litecoin himself. Apart from promoting blockchain, the foundation also works hard on improving Litecoin in every possible aspect, including technologies behind it, popularity, and more. So far, the foundation has been successful in its endeavors.
Both Litecoin and Cred are looking forward to achieving their goals together, as both are working on expanding their scope of influence and attracting new users. If all goes as planned, LTC owners will have a lot to look forward to.
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