The Bitfinex exchange announced today that it has added Solana (SOL) as collateral on its Bitfinex Borrow platform, i.e. the one dedicated to lending.
Bitfinex customers will therefore now be able to borrow up to 70% of the value of their SOL in both US Dollars (USD) and Tether tokens (USDt). Currently, the percentage obtained is 34.31% as Annual Percentage Rate (APR).
Paolo Ardoino, CTO of Bitfinex, explained:
“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.”
How will loans with Solana work on Bitfinex Borrow
From now on, Solana will appear on the Bitfinex Borrow page among the collaterals that can be selected. To use it you will simply need to deposit this collateral into your Margin wallet.
Bitfinex Borrow allows you to have a variable rate of interest depending on the Flash Return Rate (FRR) or select a loan with a fixed rate. Interest rates are calculated according to the total amount of the loan and according to the period and type of fixed or variable rate to be chosen.
The maximum term for loans of this type is 120 days and at the end of this period, the amount in the Margin wallet will be converted back.
The Bitfinex Borrow platform operates in peer-to-peer (P2P) mode to allow users to lend or borrow using both crypto and fiat currencies. To do so, customers must be verified on Bitfinex and then follow a KYC procedure.
Other accepted cryptocurrencies, apart from Solana which was added today, include Ethereum (ETH), Bitcoin (BTC), Litecoin (LTC), Polkadot (DOT), Ripple (XRP) EOS (EOS),UNUS SED LEO (LEO), Uniswap (UNI), Cardano (ADA), Chainlink (LINK), Tezos (XTZ), IOTA (IOTA) and Cosmos (ATOM).