Bitfinex Borrow is a newly announced a peer-to-peer crypto lending platform launched by Bitfinex.
According to a blog post, Bitfinex Borrow allows users to leverage token holdings to secure a loan that can be used for trading or be withdrawn from the platform.
Borrowers may use either Bitcoin or Ethereum holdings as collateral to obtain a loan in either Tether (USDt) or US Dollars (USD).
Both variable and fixed rates are available with the range currently between 5.5% to 18.25% APR. Lenders receive the interest minus a fee kept by the platform.
As crypto markets tend to be a bit volatile, Bitfinex says that users will need to manage their own risk of fluctuating crypto prices.
Additionally, borrowers will need to be fully verified.