Litecoin Foundation is reportedly collaborating with Cred, to roll out interest on Litecoin (LTC) collateral feature, enabling Litecoin clients to earn maximum 10% interest rate yearly.
Specifically, the newly-forged alliance will grant LTC holders with the ability to conduct lending activities at a rate that produces high profit, which bears some similar features to many Ethereum-based decentralized finance (DeFi) tools.
A 6-month commitment from the customers is the basic benefit to qualify for interest earning process, and they will receive it in the form of fiat or digital coins.
Other different associating firms of Cred, nominally Bitcoin.com, Uphold and BitBuy, will also provide support for the credit procedure.
“Strong use cases should be one of the most important considerations when evaluating cryptocurrency. In addition to Litecoin’s reliability, use for payments and excellent liquidity, the ability to earn interest at attractive rates through Cred’s platform further strengthens this use case.” Alan Austin – LiteCoin Foundation CEO – remarked that the collaboration with Cred will serve as a crucial real-life use case for Litecoin.
A proportion of the money from this jointly collaborated project will be directed to the growth of Litecoin. The news has surfaced when funding inquiries are being made recently, as Litecoin’s Founder Charlie Lee has suggest a 1% donation, in a voluntary manner, to financially back what the foundation is doing.