Cryptocurrency exchange MEXC has launched a new product Futures Earn, which offers up to 15% per annum. Incrypted reported on the company.

The press-release said that the launch is taking place on the background of growing competition among exchanges in the segment of passive income, where platforms are trying to offer highly profitable tools for managing digital assets to earn money from users.

«The MEXC’s croc responds to the market demand: taking into account the interests of both traders and the platform itself, the company introduces an innovative «win-win» model, which helps users to efficiently allocate capital in a volatile market», MEXC said.

The statement also says that competition for passive income between exchanges reflects the general need of users to combine the flexibility of capital and maximise profits. The key issue for traders has always been how to make the money more efficient and at times available for use, MEXC believes. The exchange team added that it is particularly important to earn interest income by preserving the ability to quickly use capital for market opportunities without sacrificing security and compliance.

According to them, historically, the money on trading accounts of exchanges faced a problem: either high efficiency in trading or additional income — it was difficult to combine them. According to MEXC, the Futures Earn product solves this problem directly: USDT and USDC balances on futures accounts, margin money and even money blocked in orders are automatically included in the programme, bringing stable income every year without any hindrances for normal trading. In the company’s statement it is confirmed that in this way seamless integration of trading and digital asset management is achieved.

The transparency of the interest calculation mechanism, as MEXC stated, increases the profitability of the product. The company said that interest is calculated every day and is calculated according to the formula: the account balance is multiplied by the sum of the base and bonus interest rate (APR), divided by 365. The base APR is applied to all USDT and USDC balances on the futures account, while the bonus APR increases depending on the net value of open positions, with the total rate capped at 15%, the team said.

«Such profitability not only exceeds the analogue indicators of stablecoins on the market, but also provides greater stability and anticipation. At present, the programme supports USDT-M and USDC-M futures, and in the future it will be expanded to Coin-M products», reads the press release.

According to MEXC, from the trader’s point of view Futures Earn provides two key advantages — efficient capital utilisation and passive income. The company emphasised that, firstly, the product maximises the use of trading assets: professional traders often keep large margin reserves to open positions and manage risks. Thanks to Futures Earn, these assets bring income even during active trading, which allows to avoid simple capital, says the statement.

On the other hand, as recognised by the representatives of the Exchange, the product provides additional income, which strengthens the passive income. The press release says that high commissions on frequent contracts and long term financing costs are common costs for traders, but with a profitability of up to 15% p.a. (including a bonus rate of up to 12%), these costs can be effectively compensated by turning them into an additional source of profit. According to MEXC, such a design demonstrates a deep understanding of traders’ needs.

MEXC Chief Strategy Officer Cecilia Hsueh said that traders want their capital to generate passive income without losing its flexibility. She stressed that Futures Earn is a direct answer to this request, as the product not only preserves the activity of users’ money, but also enhances MEXC’s competitive advantages, fully meeting the company’s positioning: more benefits, faster trade, better experience and lower costs.

MEXC added that this strategic function is deeply rooted in solving the key problems of customers and is aimed at sustainable development of the ecosystem through the profit sharing model.