Vauld Review – An OTC Desk-based DeFi Lending Platform
Ever since the apex court allows cryptocurrency trading and quashes RBI ban on cryptocurrency trading in India earlier in 2020, there has been no looking back for crypto enthusiasts. Furthermore, the impending lockdown due to the Coronavirus pandemic has boosted Bitcoin valuation and many crypto investors have invested in the virtual currency from the comfort of their homes.
Though the future of digital currency seems bright in India with the legalization of cryptocurrency exchanges, virtual currency is still not a legal tender in this country and there are a lot of loopholes that prohibit free crypto trading in India.
One of the biggest challenges of crypto trading not just in India but almost anywhere in the world is the lack of liquidity in the crypto market and other evils like money laundering or lack of consumer protection prohibitions. This may be a reason why large investors often hesitate to invest in cryptocurrencies.
So, what constraints large businesses or institutional investors to trade in the crypto market in India?
- One of the main concerns of crypto trading is the lack of liquidity in the market. While small-time investors may benefit by trading on the exchanges which are supported by the liquidity pool drawn in by the large investors, there is an absence of sufficient liquidity for those who want to trade large volumes which makes for slow transfer. Indian crypto exchanges seem to lack the efficiency to process large or multiple withdrawals even for a $1000 transaction which can be a hectic experience for large investors.
- More than that, transactions and withdrawals have to go through multi-layer security protocols, KYC documentation, and approvals which can delay the entire process.
- Lastly, the lack of proper regulation or consumer forums to safeguard the interest of the investors and security protocols is a major setback for crypto trading in India.
So, Why Vauld?
Vauld is a DeFi lending platform that was founded in 2018 by Darshan Bathija and Sanju Sony Kurian that aims to change the current landscape of crypto trading in India. Vauld wants to penetrate the crypto market and legitimize digital coins and make lending and trading crypto assets hassle-free and simple.
So, will Vauld be able to solve the liquidity problem that seems to be a major setback in the current financial scenario of the crypto market? Recently, Vauld has successfully raised a hefty $2 million (INR 14.7 crore) funding and is backed by some of the powerhouses of the crypto market, namely Coinbase ventures, Pantera, LuneX, CMT Digital, BitGo, etc. Furthermore, Vauld recently has announced its OTC desk-based end-to-end trading solution.
So, is Vauld a reasonable solution for crypto lending in India? Let us have a look.
OTC (over-the-counter) Support Desks
Vauld has recently announced the launch of the OTC desk support for INR and crypto transactions. So, what is this OTC platform and how will it benefit traders?
OTC trading aims to engage transactions based on mutual trust. OTC platform will make transactions seamless, fast, and efficient. Even a transaction as big as a few lakhs (Minimum amount = $100k ~ INR 73L) will take a few minutes to complete. OTC will facilitate end-to-end transactions and all transactions will be executed quickly without and provide the much needed liquidity.. This will be favorable for traders and get high-interest rates in the market.
Key benefits of OTC trading:
- End-to-end blazing-fast transactions
- Full anonymity to its users
- KYC verification and 2-FA authentication to eliminate fraud
- Ensures transparency by eliminating intermediaries
- Trust-based transactions with verified traders
- Greater liquidity especially for big investorsFast fulfillment of orders a reason why big investors will want to invest in the platform
Vauld Key Features
Earn Interests with Vauld: You can open an account in Vauld with a minimum deposit of $1 worth of tokens. There is no maximum limit. You can earn compound interests that are calculated daily on your cryptocurrencies or can also add up at the end of the term. Withdrawals are instant and can be done anytime. Interest rates are high for fixed deposits where your funds are locked for a period of one month. However, traders can opt-out and liquidate their funds at any time and there are no penalties. To earn interest, you have to deposit your funds on the Vauld wallet. Interest rates depend on the type of deposit,type of tokens used and the asset volume
Lending against Collaterals: Crypto loans are approved instantly against an LTV (loan-to-value) ratio of 66.67% against collaterals. The minimum loan amount is $100.
Swap Instantly between INR and Cryptocurrencies and between Cryptocurrencies: One of the important features of Vauld is that it allows easy swap between INR and crypto coins. Vauld is backed by the liquidity of $50 million. For trading, you need to complete your KYC verification which can be done instantly within 30 minutes.
Wallet Support: Vauld allows enterprises to create central wallets for their organization and even unlimited wallets assigned to each user. These multi-signature wallets can be customized and can hold multiple cryptocurrencies. The wallets do not store your private keys and passphrases. All transactions and APY rates for borrowing and lending can be viewed clearly on the API-based dashboard.
API integrated FIAT Rails: The wallets support INR and cryptocurrency trading. Traders can deposit into their wallets via credit and debit cards/IMPS/NEFT/UPI/RTGS without any interest fees. Withdrawals and transfers of funds can be made at any time to any bank account.
Vauld Dashboard: The Vauld API dashboard is simple to use and supports both Android and iOS phones and you can keep track of all your transaction history.
Safety & Security: All user accounts are validated by KYC verification and multi-factor authentication process. Vauld has insurance coverage of $100 million with Lloyds London and also backed up by BitGo, a well-known name in the crypto world further adding to its credibility.
Fees & Interest Rates: APY interest rates are high up to 11.57% on crypto tokens. You can borrow tokens against a fee as low as 1%. There are no hidden charges. Deposits and withdrawals are instant and do not charge any fee. Maker and taker fees are 0.05%.
24/7 Customer Support: Vauld has 24/7 customer support with live chats that generally replies within 5 minutes. You can also follow their Twitter account for live updates.
Overall, Vauld has got a very positive review. It is good for small-time investors as well as larger institutional traders due to the large liquidity pool. Further, the OTC desk support has mobilized trading attracting big investors to invest in the platform. However, Vauld is still new in the block, so many investors may hesitate to venture into the exchange. However, new investors may find it comforting given Vauld’s liquidity support and partnership with some big names in the crypto world. Finally, the FIAT-crypto swap is a feather in the cap and a real reason why many investors in India will want to invest in this lending platform.