Today the Bitfinex trading platform announced that it has added Ripple (XRP), Litecoin (LTC), EOS and Polkadot (DOT) as collateral on Bitfinex Borrow, its crypto lending service.
Those who decide to use their crypto as collateral will get up to 80% of the value of their XRP, LTC or EOS and up to 70% of their DOT in the Tether (USDt) stablecoin or US Dollars (USD).
Paolo Ardoino, CTO of Bitfinex, explained this news:
“Adding support for XRP, Litecoin, EOS and Polkadot on Bitfinex Borrow will provide our users with more freedom and flexibility when taking out loans from our highly liquid peer-to-peer lending markets. This also provides our users with additional avenues to utilise some of their favourite cryptocurrencies.”
As of today, December 14th, 2020, loan rates are:
- XRP 13.07%.
- LTC 7.9%
- EOS 0.0192%
- DOT 0.0004%.
These percentages are to be calculated as annual APR (Annual Percentage Rate).
How to use the Bitfinex Borrow platform
To obtain these loans, users must first deposit the collateral in XRP, LTC, EOS or DOT in the Margin wallet on Bitfinex. The loan will arrive on this same wallet. Obviously, these same cryptocurrencies are also listed on the exchange so it will be easy to switch from the trading wallet to the margin wallet.
To borrow with Bitfinex Borrow users will have to pass the highest level of KYC, while those who have the intermediate KYC will be able to access the program but will not be able to withdraw funds.
Bitfinex: loans also in euros and yen
Recently Bitfinex Borrow also added loans in euros and yen, with up to 80% of the value of crypto in euros or up to 70% in yen, while the related APRs amount to 4.56% for euros and 62.53% for yen.