Digital asset business Bitfinex, which offers a crypto-asset trading platform, recently added Solana (SOL) as a guarantee on Borrow Bitfinex, a peer-to-peer (P2P) digital token lending portal.
Bitfinex Customers will now be able to acquire loans of up to 70% of the value of their SOL holdings in USD and Stablecoin Tether (USDT). At the time of this announcement, SOL’s borrowing rate “was 34.31% APR” according to a statement shared with CI.
Paul Adroino, CTO at Bitfinex, said:
“We are delighted to add Solana to our growing list of warranty options on Bitfinex Borrow. This will provide our users with another avenue to take out a personal loan in our highly liquid peer-to-peer lending markets. “
Borrowers can choose SOL from the list of supported currencies they want to use as collateral, “displayed on Bitfinex’s borrowing page, before depositing sufficient collateral into their margin wallet,” the announcement reads.
A client can then choose between a variable interest rate “based on the flash rate of return (FRR) or a fixed rate loan,” the statement said while adding that the annual and daily rates, as well as the total amounts. loans and repayments, “are calculated on the basis of the amount deposited as security, the amount of the loan, the borrowing period and the prime interest rate option.
As mentioned in the update, borrowers can choose the length of a loan repayment term, with fixed rate loans “offering a maximum term of 120 days”. When an outstanding fixed rate loan expires after 120 days, “it automatically converts to a variable rate loan,” the announcement revealed.
The personal loan is then credited to the borrower’s Marge portfolio. Borrowers can make partial or full repayments on the principal and interest of the loan “by moving funds into their margin portfolio, thereby reducing their daily interest rate,” the announcement notes while adding that borrowers will “have to” manage their own risk from the fluctuation of the price of SOL.
For more information on Bitfinex Borrow, see here.
Founded in 2012, Bitfinex describes itself as a digital token trading platform providing services to global traders and liquidity providers. In addition to a suite of sophisticated trading features and charting tools, Bitfinex offers access to P2P funding options, OTC market and margin trading for various crypto tokens.
Bitfinex’s business strategy is primarily focused on offering the latest tools, support and innovation for professional traders and liquidity providers or LPs across the world. Bitfinex is a Hong Kong-based crypto exchange owned and operated by iFinex inc., which is also based in Hong Kong and registered in the British Virgin Islands.
Money from Bitfinex customers has reportedly been stolen or lost on multiple occasions, and the company has failed to secure reliable banking relationships. iFinex, which is the parent company of Bitfinex, is also the parent company of Tether Ltd., a company that has been the target of several lawsuits by regulators.