Hodlnaut Referral Program
Earn Interest on Crypto
On 8 August 2022 evening, Hodlnaut announced it will be halting withdrawals, token swaps and deposits with immediate effect.
- informed the MAS of intention to withdraw licence application.
- Hodlnaut is no longer providing regulated digital payment token (DPT) services, ie token swap feature. For the avoidance of doubt, Hodlnaut will also cease all borrowing and lending services.
- all social media platforms will be turned off except:
- for any enquiries, email email@example.com
- updates will be at https://www.hodlnaut.com/blog/news alongside regular email updates to users.
- next update will be on Friday, 19 August 2022.
Removing the referral link from this page till there is more clarity on the situation.
Further updates to the situation can be found here.
Table of Contents
Hodlnaut is a combination of HODL and Astronaut! Hodl is common slang in the cryptocurrency community, where it depicts an act of holding the cryptocurrency rather than selling it.
Two entrepreneurs started Hodlnaut out of Singapore in March 2019. It is a platform that provides financial services for individual investors where they earn interest on their cryptocurrencies by lending it to corporate borrowers, who would otherwise struggle to access crypto loans.
What is Hodlnaut’s business model? How does Hodlnaut make money?
Hodlnaut takes a small portion of the interest earned from lending. They also lend out the assets to decentralized protocols and earn interest from there.
Interest Rates and Payment
Latest interest can be found at https://www.hodlnaut.com/rates
Interest earned is deposited directly into your Hodlnaut account. The interest is calculated at the end of every day, and is credited to investor accounts weekly every Monday, 5PM (GMT +8).
Cryptocurrencies accepted for deposits
Hodlnaut currently accepts deposits in:
- BTC (Bitcoin)
- DAI (Stablecoin)
- ETH (Ethereum)
- Luna (Terra) [added on 6 Apr 2022]
- USDC (Stablecoin)
- USDT (Stablecoin)
- UST (Stablecoin) [added on 6 Apr 2022]
- WBTC (Wrapped Bitcoin)
Is Hodlnaut safe? Licensing and regulatory compliance
Hodlnaut Pte Ltd is based in Singapore and ruled under Singapore Law. The Monetary Authority of Singapore (MAS) introduced the Payment Services Act on the 28th of January 2020, which covers cryptocurrencies classified as “digital payment tokens.”
In March 2022, Hodlnaut announced having received an in-principle approval (IPA) letter for a Major Payment Institution License in Singapore from MAS under the Payment Services Act (PS Act).
Hodlnaut currently offers two digital payment tokens (DPT) services:
- borrowing and lending services
- Token Swap feature.
Currently, MAS is only regulating Hodlnaut’s DPT Token Swap feature, and not DPT borrowing and lending services.
Platforms to connect with Hodlnaut include:
Hodlnaut supports corporate accounts too. You can reach out to them at firstname.lastname@example.org
You can swap between the supported tokens on Hodlnaut for FREE.
For example, if you think there is a potential for ETH to appreciate in the near future, you could swap your USDC assets into ETH within Hodlnaut using the token swap feature. This avoids the hassle and costs of transferring your assets out of Hodlnaut to convert, and then depositing into Hodlnaut again.
Security and risk management
How funds are stored
Hodlnaut takes a security-first approach, and do not have hot wallets.
Hodlnaut uses Fireblocks’ multi-party computation wallet infrastructure to secure funds. When users sign up for an account with Hodlnaut, they will be assigned a unique address generated by Fireblocks. When they deposit funds into Hodlnaut, funds are secured with Fireblocks’ wallet infrastructure.
On the backend, Hodlnaut will then access the funds and either transfer them to self-custody cold wallets or lend the funds to borrowers.
Hodlnaut users can get custody cover for their funds through Nexus Mutual’s Hodlnaut Custody Cover smart contract at a small premium.
- All employees have to undergo stringent Security Awareness training yearly.
- All employee’s laptops are encrypted and secured. They do not store any personal customer data and other sensitive user data.
- Employees that can access customer data via our internal system have different clearance levels.
- Hodlnaut does not sell any data and their policy is to respect users’ privacy.
- Security policies are regularly reviewed to make ensure they meet the current best practices.
What happens to my account and assets if I pass away?
Hodlnaut will adhere to the applicable probate laws of Singapore.
What happens when a borrowers defaults?
Hodlnaut may liquidate the borrower’s collateral and repurchase the borrowed funds. Hodlnaut may take legal action to recover the funds if necessary. Furthermore, in an event a default happens, Hodlnaut will be taking on the loss and paying users from their equity funds.
Tokenize has partnered with Hodlnaut to #SupportLocal
As strategic partners, Tokenize Xchange will be Hodlnaut’s preferred fiat (SGD) to crypto on-off ramp for digital assets. See the announcement on the Tokenize Xchange blog.
Strategic partnership with Okcoin
On 15 September 2021, Okcoin and Hodlnaut announced a strategic partnership: “Singapore-Based Crypto Lending Platform Hodlnaut Partners with Leading Crypto Exchange Okcoin”.
“The strategic collaboration positions Hodlnaut as the first CeFi platform to partner with the American crypto exchange, and aims to allow users from both platforms to easily purchase cryptocurrencies and earn attractive returns on their assets.”
“Okcoin is also Hodlnaut’s preferred fiat on-ramp solution especially for BTC/SGD and ETH/SGD pairs (only available to customers of Okcoin Pte. Ltd.), as this would allow Singapore users to generate yield on the two largest crypto assets in their local currency.”
There was this following risk warning when trying to sign up:
RISK WARNING ON DIGITAL PAYMENT TOKEN SERVICES
Kindly note that if you reside in Singapore, your counterparty is Hodlnaut Pte. Ltd. (SG). If you reside in any other country apart from Singapore, your counterparty is Hodlnaut Trading Limited (HK). Kindly note that the token swap service offered by Hodlnaut Pte. Ltd. is the only regulated activity under the Payment Services Act.
If you reside in Singapore, the Monetary Authority of Singapore (MAS) requires us to provide this risk warning to you as a customer of a digital payment token (DPT) service provider. Before you pay your Digital Payment Token (“DPT”) service provider (Hodlnaut Pte. Ltd. or the Company) any money or DPT, you should be aware of the following.
Please note that you may not be able to recover all the DPTs you paid to your DPT service provider if the Company’s business fails.
You should not transact in the DPT if you are not familiar with this DPT. Transacting in DPTs may not be suitable for you if you are not familiar with the technology that DPT services are provided.
You should be aware that the value of DPTs may fluctuate greatly. You should transact DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
Hodlnaut requires Know-Your-Customer (KYC) verification for all accounts before depositing. This is required as the company is based in Singapore and must meet the requirements of the MAS (Monetary Authority of Singapore).
Signing up was easy but my Know Your Customer (KYC) process was delayed because I uploaded a blurry photo of my ID.
How to fund Hodlnaut account?
Hodlnaut is not a centralised exchange. As of March 2022, there is no support to deposit Fiat currency and use it to buy cryptocurrencies. You will need to have an account with some other crypto exchange to purchase and deposit into Hodlnaut.
Some recommended services, in alphabetical order include:
- First 10 withdrawals per month is free so you don’t have to pay when you transfer over to Hodlnaut
- Gemini offers free direct deposits for SGD from your bank account. All you need to do is to manually link your bank account to your Gemini wallet, and you can immediately start transferring funds to and from your Gemini wallet.
- Hodlnaut’s preferred fiat on-ramp solution especially for BTC/SGD and ETH/SGD pairs
- Tokenize Xchange
- Hodlnaut’s strategic partner and preferred fiat (SGD) to crypto on-off ramp
The moment the USDC I transferred in arrived, a counter showing the interest I would earn on the next weekly payout day started running . No action was required on my part to get things started.
Learn more on crypto investing in Singapore
We have set up SgCryptoInvestor.com to share crypto-related insights and promotions from a Singapore perspective.
Here are some Hodlnaut related content that readers might find useful: