Digital asset firm Bitfinex, which offers a crypto-asset trading platform, recently added Solana (SOL) as collateral on Bitfinex Borrow, a peer-to-peer (P2P) digital token loan portal.
Bitfinex clients will now be able to acquire loans of as much as 70% of the value of their SOL holdings in USD and stablecoin Tether (USDT) as well. At the time of this announcement, the borrowing rate for SOL “was 34.31% APR” according to a release shared with CI.
Paolo Adroino, CTO at Bitfinex, stated:
“We’re pleased to add Solana to our growing list of collateral options on Bitfinex Borrow. This will provide our users with another way to take out a personal loan from our highly liquid peer-to-peer lending markets.”
Borrowers may choose SOL from the list of supported currencies that they want to use as collateral, “displayed on the Bitfinex Borrow page, before depositing sufficient collateral into their Margin wallet,” the announcement noted.
A client may then select between a variable interest rate “based upon the Flash Return Rate (FRR) or a fixed-rate loan,” the release explained while adding that the annual and daily rates, as well as total lending and repayment amounts, “are calculated based upon the amount put down as collateral, the loan amount, borrowing period and preferred interest rate option.”
As mentioned in the update, borrowers are able to select the length of time over which a loan can be repaid, with fixed-rate loans “offering a maximum 120-day term.” When an outstanding fixed-rate loan expires after 120 days “it is automatically converted into a variable-rate loan,” the announcement revealed.
The personal loan then gets credited to a borrower’s Margin wallet. Borrowers can perform partial or full repayments on the principal and interest of the loan “by moving funds back into their Margin wallet, thereby reducing their daily interest rate,” the announcement noted while adding that borrowers will have to “manage their own risk of the fluctuating SOL price.”
For additional information on Bitfinex Borrow, check here.
Established in 2012, Bitfinex describes itself as a digital token trading platform offering services for traders and global liquidity providers. In addition to a suite of sophisticated trading features and charting tools, Bitfinex offers access to P2P financing options, an OTC market and margin trading for various crypto tokens.
Bitfinex’s business strategy mainly focuses on offering the latest tools, support, innovation for professional traders and liquidity providers or LPs across the globe. Bitfinex is a Hong Kong-headquartered crypto exchange owned and operated by iFinex Inc., which is also based in Hong Kong and registered in the British Virgin Islands.
Bitfinex clients’ money has reportedly been stolen or lost on several occasions, and the company has not been too successful at securing reliable banking relationships. iFinex, which is Bitfinex’s parent firm, is also the parent of Tether Ltd., a company that has been the target of several lawsuits from regulators.
