IEO in binance, this is why.
I saw this before on DOT then the issue got resolved. Not the first time probably not the last. Would like to know why this can happen!
The interest rates for BNB should be allowed to go higher when the liquidity is going down. Now it seems it is capped at roughly 12% for supply and 11% for borrowing.
This event drives the needs of BNB, and the lending platform should be flexible to let BNB rate go up high enough to force people to borrow less or to repay BNB. Otherwise there is an arbitrage opportunity for BNB borrowers and it is not fair for BNB suppliers.
I see the interest rate is higher this time, which is 66.77% now. However, BNB is still drained and I can not take my BNB out to participate the Binance launchpad program. I think the interest model makes 66.77% to be the upper bound which is still quite limited. Ideally the interest rate should not have an upper limit (or with a much higher limit, i.e. 200%) and it should be decided by the market itself. If people think participating the launch will produce an effective APY 100% in 7 days then they will withdraw/borrow at any rate less than 100%.
I can’t withdraw my bnb either. How long are we supposed to wait for our funds to be free?
Till IEO is finished on Binance.