Video by Kelvin Learns Investing via YouTube
Source
In this video, I will be reviewing Hodlnaut. Hodlnaut is a high interest crypto account. I’ll be talking about how Hodlnaut works, how does it compare with other platforms like BlockFI and Celsius, is Hodlnaut safe, what I like and what I don’t like about Hodlnaut. Enjoy!
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0:00 – Intro
1:02 – Hodlnaut history
Hodlnaut was founded by 2 entrepreneurs, currently has 5000 users and is managing over 300 million USD in cryptocurrencies. They are still quite small, but is growing super fast.
https://www.hodlnaut.com/company
1:39 – How Hodlnaut works
All you need to do is just deposit any of the 5 cryptos into Hodlnaut to earn interest, which will be paid to you every Monday at 5pm. Hodlnaut lends out the cryptos to vetted and mostly regulated entities in Singapore, then pass back some of the earnings to us.
2:23 – Platforms comparison
Hodlnaut has the highest interest among the othe platforms. But, it has only 5 cryptos. According to them, their interest can change every month. Hodlnaut has a USD18 withdrawal fee while others have 1 free monthly withdrawal.
4:04 – Security
Hodlnaut uses Fireblocks to secure your wallets and eliminates single point of failure.
https://www.hodlnaut.com/press/hodlnaut-selects-fireblocks-secure-assets-next-generation-mpc-security
While the interest is super high, the whole crypto lending business is like a black box. Meet Kevin expressed his concern on this issue.
MAS won’t save you if anything happens too, so when using Hodlnaut, keep in mind that these kind of risks exist. I reached out to Hodlnaut to ask about these issues.
They mentioned that the their collateral level is 130% of the loan value. If the borrower goes bankrupt Hodlnaut will use the collateral to repurchase lost funds. Hodlnaut has put aside sufficient funds to cover losses from events like hacks, but they didn’t mention to me how much they put aside. Hodlnaut keeps the cryptos in either cold storage or lent out, so the risk of the cryptos being stolen is very low.
Hodlnaut is audited quarterly by Crowe Singapore, and is applying for MAS and Major Payment Institution license, that means that are following all the strict regulations set out.
6:17 – What I like
Hodlnaut has the highest interest rates among the other platforms. But I feel this is just a strategy to get people to use Hodlnaut. Eventually the rates will reduce too. Hodlnaut pays the interest every Monday, which is great. Hodlnaut takes security very seriously. Using Fireblock to secure the platform, only loans to institutions which has good financial standing, and taking steps to meet regulation requirements.
6:59 – What I don’t like
Hodlnaut only supports 5 cryptos now. But they should be adding more cryptos in the future. Hodlnaut has high withdrawal fee, but I would say the high interest outweighs the withdrawal fee.
I wish Hodlnaut is able to be more transparent about their business. But i understand these are trade secrets and they can’t reveal everything, we just have to trust them and these are the risks we have to take in exchange for a high return.