Bitfinex, the popular cryptocurrency trading platform, today announced it has added Tezos (XTZ) as collateral on Bitfinex Borrow, a peer-to-peer (P2P) digital token loan portal.
Users will be able to obtain loans of up to 70% of the value of their XTZ holdings in US dollars (USD). At the date of this announcement, the borrowing rate for XTZ was 1.288% Annual Percentage Rate (APR).
Bitfinex Borrow
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.
Users 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 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 XTZ fluctuating.
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