EURC Lending at Bitvavo
Summary
EURC Lending is a part of the general Bitvavo Lending product. This article explains how EURC Lending works at Bitvavo, how to turn it on and off, and how borrowing fee payments are calculated and paid out. You will also find information about the risks and what happens when you withdraw your EURC.
What is EURC Lending?
EURC is a stablecoin that is designed to keep a value of €1 and is backed by euro reserves. Because of this, the value of EURC does not move up and down the way most other crypto assets do. However, like other crypto assets, its value is not guaranteed.
EURC Lending is part of Lending at Bitvavo and is currently available to our German customers only. When you turn it on, you lend your EURC to Bitvavo Custody B.V., which may lend it on, for example to support margin trading on Bitvavo. In return you earn borrowing fees, paid out every week. Your EURC stays available to you. You can trade or withdraw it whenever you want, and any EURC you sell or withdraw simply stops earning borrowing fees from that day. The Lending terms in our User Agreement apply.
How can I participate in EURC Lending?
Make sure you have EURC in your account. You can buy EURC on Bitvavo or deposit it from an external wallet.
- Go to the Earn Hub or the EURC asset page.
- Turn on EURC Lending and confirm.
Once EURC Lending is on, you automatically start accruing borrowing fees on all the EURC in your account. EURC that you buy or deposit later is included automatically. Using "Auto Earn"? When you turn on "Auto Earn", you turn on Staking, Lending and EURC Lending at once. You do not need to turn on EURC Lending separately.
What is the current borrowing fee rate for EURC Lending?
The current borrowing fee rate for EURC Lending is 4% per year. The rate can be changed at any time. You can see the current rate on the EURC asset page, and we will let you know if it changes.
How do I turn off EURC Lending?
EURC Lending is optional, and you can turn it off at any time in the "Earn Hub" or on the EURC asset page. Your EURC stays in your account and stops accruing borrowing fees from the day you turn it off. Borrowing fees accrued up to that day are paid out at the next weekly payout. You can also sell or withdraw your EURC, under the terms and conditions as described in our User Agreement. Please note: EURC that you sell or withdraw automatically stops earning borrowing fees from the day you sell or withdraw it. Borrowing fees you have already accrued until then are still paid out at the next weekly payout.
Lending services are offered by Bitvavo Custody B.V., which is not licensed under MiCA. Any conflicts of interest are managed in line with MiCA requirements. For more details, please read our Conflict of Interest Disclosure. Additionally, because Lending services fall outside the scope of MiCA regulation, certain safeguards may not apply. Please ensure you understand the associated risks by reviewing our Risk Disclosure and User Agreement.
FAQ
When are my borrowing fees credited to my account?
Borrowing fees are calculated daily and paid out weekly in EURC, every Monday.
How are borrowing fees calculated?
Borrowing fees are calculated daily, based on the current borrowing fee rate for EURC (which may change over time) and the lowest EURC balance you held that day. Borrowing fees are paid out weekly. You stop accruing borrowing fees on EURC that you sell or withdraw. Borrowing fees you have already accrued until then are still paid out at the next weekly payout. For example, if you sell your EURC on a Friday, you still receive the borrowing fees accrued from Monday to Thursday.
Are there any minimum amounts to receive borrowing fees?
Yes. You need at least €1.00 worth of EURC to receive borrowing fees. If your balance is lower than that when borrowing fees are calculated, no borrowing fees are generated.
Where can I see my borrowing fees?
On the EURC asset page you can see the current borrowing fee rate, the borrowing fees you have built up this week and your next payout. Your EURC borrowing fees are also included in your total earnings in the "Earn Hub".
Can I still trade and withdraw my EURC as usual?
Yes. While EURC Lending is turned on, you can sell or withdraw as usual, as described in our User Agreement. When you sell EURC, the amount you sell stops being lent out straight away.
Is EURC Lending the same as Lending for other assets?
EURC Lending is part of Bitvavo’s Lending service, but it is only available to German tax residents and has its own borrowing fee rate and opt-in. Turning Lending on or off for other assets does not affect EURC Lending, and the other way around. However, if you turn on "Auto Earn", EURC Lending is included.
Why is EURC Lending not available to me?
We are rolling out EURC Lending gradually. We currently only have lending for EURC available for select customers in Germany.
Is EURC Lending coming to my country?
EURC Lending is currently only available for select German customers. We cannot say yet whether or when it will become available in other countries. For the latest information, check the "Earn Hub" in your account.
Are there any tax implications for EURC Lending borrowing fees?
Borrowing fees from EURC Lending may be taxable. Tax rules depend on your personal situation and where you live, so we recommend checking with a tax advisor. Borrowing fees are included in your annual tax report.
What are the risks involved with EURC Lending?
When you turn on EURC Lending, you lend your EURC to Bitvavo Custody B.V. Bitvavo Custody B.V. can lend it to other users for margin trading on the Bitvavo platform. Bitvavo Custody B.V. takes risk management measures to protect your assets. However, as with any lending service, risk remains. Lending services are offered by Bitvavo Custody B.V., which is not licensed under MiCA. Certain safeguards may not apply. We recommend reviewing the Risk Disclosure and User Agreement to decide if EURC Lending suits you.
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