Hodlnaut is an innovative cryptocurrency platform that combines the benefits of high-interest crypto lending with the ability to easily swap from one crypto to another directly within the platform. This makes it easier for users to earn a high rate of passive cryptocurrency income while also being able to anticipate and react to changes in the crypto market by swapping between coins. In this post, I'll explain how Hodlnaut works, some of the advantages it offers, and a few points to keep in mind.
Key Advantages of Hodlnaut
In my mind, there are two key points that make Hodlnaut stand out among its peers: its insanely high interest rate and its integrated swap functionality. Although DeFi was my gateway to crypto, I think that it is evident that current interest rates are abysmally low. At the time of writing this article, ETH is only getting .12% interest on Compound and most of the stablecoins are hovering around 3% which means they are barely keeping pace with inflation. By contrast, stablecoins on Hodlnaut can earn up to 12.7% interest while ETH is currently earning 7.2% - that means the interest on Hodlnaut is almost 64x higher than Compound.
To be fair, most CeFi platforms in general have a higher interest rate than DeFi, so although the interest rates on Hodlnaut are quite attractive compared to DeFi, virtually any CeFi platform will have that same advantage. The real distinguishing feature between Hodlnaut and its peers is that Hodlnaut allows users to conduct no-fee swaps between any of its supported assets at any time. The importance of this can't be overstated. Suppose that you are hodling ETH and find that the ETH 2.0 rollout has failed miserably and you want to sell ETH before the price crashes.
With a traditional CeFi platform, you will have to waste precious time withdrawing your funds, waiting for approval, transferring to an exchange, waiting for deposit confirmation before finally being able to convert to a more stable asset....the whole time just waiting while money slips through your fingers. With Hodlnaut, it's simple to quickly swap between assets directly in the platform.
Potential Drawbacks
As always, I like to share all the aspects of a platform, and although I do think Hodlnaut has some awesome features, I do have to point out that the selection of coins is quite limited for now. Users can lend ETH, BTC, WBTC, and a few stablecoins. Although the list of coins itself may seem small, keep in mind that ETH and BTC make up about 60% of the total crypto market cap, and that's before we add in the stable coin market cap to the mix. So although Hodlnaut might not support a lot of different coins, it can still serve a large portion of the crypto market in terms of market cap. I should also mention that Hodlnaut is a CeFi platform so KYC will be required. Again, this is something that applies equally to any CeFi platform so it certainly isn't something I hold against Hodlnaut.
My Personal Experience
I know that it's easy to go on a website and read facts and figures, so I wanted to share a bit of my personal experience. I have been using Hodlnaut for about a month, and I feel that I have gotten a pretty good grasp of the platform. One of the things that I like best about Hodlnaut is that it is very "hands-off". Once my deposit arrived in Hodlnaut, I made a small trade to divide my portfolio 50/50 between USDT and ETH. The swap functionality worked perfectly and that was the only human intervention that I have done on the platform.
Since I made that one simple swap, my crypto has been sitting there earning me interest. I have actually been in the process of making a huge move to a different state, and its incredible knowing that my crypto is hard at work earning me money even when I don't have the time to directly supervise it. If that isn't cool enough, Hodlnaut even has a cool countdown timer to let you know how much you will receive for your next payout and when you can expect it - it's just a little something to look forward to every week.
In my PERSONAL opinion, I think Hodlnaut is fantastic. However, I can't use it for all of my crypto lending needs. For example, I also hold a bit of DOT, BAT, and BCH that I simply can't lend here as they are not supported. That being said, I think it's perfectly fine to use more than one platform, and we don't have to pick a "favorite". If I like Hodlnaut, I can simply lend my stablecoins there while lending my other assets elsewhere. Hopefully, we will see Hodlnaut add support for more coins soon though!
Closing Thoughts
Overall, I think that Hodlnaut presents a unique fusion of crypto lending and the ability to swap coins. I don't ever like to tell people what products they should or shouldn't use, but I do see a clear niche for Hodlnaut. I think that crypto users who mainly invest in ETH, BTC, or stablecoins will appreciate the high-interest rates and easy-to-use swap tool. By contrast, users who have heavy altcoin positions will find that those coins simply aren't supported on Hodlnaut (for now).
If you're interested, feel free to check out Hodlnaut using the link below. Using this link costs you nothing, but it does support my work.
As always, thanks for reading and nothing is financial advice.
References
https://app.hodlnaut.com/account
https://compound.finance/
https://www.coingecko.com/en
