Huobi HTX's flexible staking and borrowing product snapped up, potentially sparking a new trend in bull market lending
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Huobi HTX's flexible staking and borrowing product snapped up, potentially sparking a new trend in bull market lending
Bull market phases are often accompanied by increased DeFi activity, the popularity of liquid staking, and active lending markets.
Navigating Web3 tides with focused insightsRecently, as BTC and various altcoins experience significant volatility, the pace of the crypto bull market has accelerated.
During a bull market, a common strategy is to select coins with long-term potential and hold them. Alternatively, traders can take advantage of high market volatility for short-term trading to generate quick profits. As such, bull markets are often accompanied by increased DeFi activity, growing popularity of liquid staking, and an active lending market. Crypto users aim to maximize capital efficiency and optimize returns.
Against this backdrop, HTX (formerly Huobi) has launched a flexible collateralized borrowing product that allows on-demand deposits and withdrawals, which has gained widespread user adoption and could spark a new wave of borrowing activity during the current bull run.
Collateralized Borrowing: A Powerful Tool to Unlock Liquidity
Collateralized borrowing is a flexible financial product introduced by HTX that enables users to borrow other cryptocurrencies—such as USDT, BTC, and ETH—by locking up their digital assets as collateral, meeting diverse funding needs.
For example, when a user identifies a token with strong upside potential but does not wish to sell their existing holdings, they can pledge their BTC to quickly borrow a suitable amount of USDT for investment. After the target token appreciates as expected, the user sells it, repays the borrowed USDT, and retrieves the pledged BTC—thereby realizing a profit.
In early December, building upon its range of fixed-term borrowing products, HTX launched a groundbreaking demand deposit-style dynamic interest rate collateralized borrowing product that supports instant borrowing and repayment with zero fees, significantly enhancing the user experience. This highly flexible mechanism makes the product an ideal tool for efficient capital utilization.
Impressive Data: Rapid Growth in Scale and Users
Thanks to its ultra-low interest rates, flexible loan terms, and superior user experience, HTX’s collateralized borrowing demand product has seen explosive growth in both user numbers and collateral volume. Within less than 10 days of launch, the outstanding borrowing amount surpassed 30 million USDT. Moreover, compared to before the launch of the demand product, HTX’s overall lending volume has increased fivefold, while the number of borrowing users has tripled.
This achievement not only reflects strong user trust in HTX’s offerings but also indicates that the collateralized borrowing model is gaining broader market acceptance.
Rewards Doubled, Ultra-Low Rates Extended: Enhanced User Experience
The second phase of "Borrow-to-Mine" is now live. From December 12, 10:00 to December 18, 23:59 (UTC+8), users participating in the USDT demand borrowing program can share a total reward pool of 5,400,000,000 $HTX.
Notably, the reward pool for the first phase was 2,700,000,000 $HTX—the current phase has doubled it. Furthermore, to thank users for their support, HTX will continue offering low interest rates on its collateralized borrowing demand product with dynamic rates, enabling users to achieve higher investment returns through low-cost borrowing.
This clearly demonstrates two points: 1) The collateralized borrowing product is highly popular in the market; 2) HTX is sincerely committed to letting users experience the benefits of its demand borrowing product.
HTX also revealed that it will continue launching more promotional campaigns and innovative features to deliver even better service experiences. According to the campaign rules, if the borrowing volume for the second-phase demand product reaches 50 million USDT, the next reward pool will double again to 10.8 billion $HTX, bringing even greater surprises to users.
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