P2P digital token loan portal Bitfinex Borrow adds Tezos (XTZ) as collateral
By Edil Corneille
Bitfinex, a digital token trading platform, has added Tezos (XTZ) as collateral on Bitfinex Borrow, a peer-to-peer (P2P) digital token loan portal. Bitfinex customers will be able to obtain loans of up to 70% of the value of their XTZ holdings in US Dollars.
“We’re pleased to welcome the Tezos community to our highly liquid peer-to-peer lending markets,” said Paolo Ardoino, CTO at Bitfinex. “We anticipate great interest from Tezos holders in using Bitfinex Borrow to obtain a personal loan.”
Borrowers can select XTZ from the list of currencies they wish to use as collateral, displayed on the Bitfinex Borrow page, before depositing sufficient collateral into their Margin wallet.
A customer can choose between a variable interest rate based upon the Flash Return Rate (FRR) or a fixed-rate loan. The annual and daily rates, as well as total lending and repayment amounts, are calculated based upon the amount used as collateral, the loan amount, borrowing period and preferred interest rate option.
Borrowers can choose the length of time over which a loan is 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 personal loan will be credited to a borrower’s Margin wallet. Borrowers can make partial or full repayments on both the principal and interest of the loan by moving funds back into their Margin wallet, thereby reducing their daily interest rate. Borrowers will have to manage their own risk of the fluctuating XTZ price.
While Bitfinex customers verified at the intermediate or full level can obtain access to Bitfinex Borrow, only fully verified users can borrow fiat currencies and withdraw fiat from the platform.
In addition to a suite of advanced trading features and charting tool, Bitfinex provides access to P2P financing, an OTC market and margin trading for a wide selection of digital assets and derivatives trading.
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