Bitfinex, the Bitcoin exchange, announced the launch of a peer-to-peer lending service through the integrated Borrow platform.
💥Bitfinex Borrow, a peer-to-peer platform for crypto loans has arrived💥
Get a loan in:
💰Tether (USDt) or
💰 US Dollars (USD)Become verified and discover what Bitfinex Borrow has to offer, find out more ⬇️https://t.co/kKcmmp7e4C pic.twitter.com/haZz0ZMn7e
— Bitfinex (@bitfinex) November 11, 2020
The service allows clients to use digital assets as collateral for a loan that can be used for trading or withdrawn from the platform. Collateral accepted includes Bitcoin and Ethereum. The loan is issued in US dollars or Tether (USDT).
Borrowers can choose between a fixed rate or a variable rate called the Flash Return Rate. The methodology for calculating the latter is provided on the exchange’s website.
Annual and daily rates, as well as the total lending and repayment amounts, are automatically calculated based on the collateral value, loan amount, loan term, and the preferred interest rate.
“Users may partially or fully repay both the principal and the interest on the loan by transferring funds back to their margin wallet, thereby reducing the rate,” the exchange said.
Earlier in October, Bitfinex expanded the list of assets for staking on Cardano and Polkadot.
Prior to that, in September Bitfinex opened trading of stock index derivatives paired with the stablecoin USDT.
Follow ForkLog news on Twitter!