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- Bitfinex announced the addition of Chainlink to the platform
- The customers can now procure loans up to 70% of the work of their total LINK holdings
- Borrowers can now choose LINK from the variety of currencies they want to utilise as collateral
Bitfinex Borrow is a peer-to-peer (P2P) programme devoted to funding. It allows users to receive funds from other users. Their cryptocurrency or fiat assets function as collateral. It is an additional feature for the funding market. It enables one to utilise their existing assets as security for borrowing purposes.
Bitfinex’s Twitter announcement
Bitfinex announcedthe addition of Chainlink to the platform via its official Twitter account on February 2. It indicated that the users can now acquire a loan by using their $LINK as security.
To be precise, the customers of Bitfinex will be able to procure loans up to 70% of the work of their total LINK holdings.US Dollars and Tether tokens (USDt) are means of measuring these holdings. The borrowing value for LINK was 4.878% Annual Percentage Rate on the date of this declaration.
Borrowers can now choose LINK from the section of currencies they want to utilise as collateral. The list stands exhibited on the Bitfinex Borrow page.
Choices with interest rates
A customer has various options available. The first option is a variable interest rate that works on a similar pattern to the Flash Return Rate. The other option is the fixed-rate loan.
The yearly and regular rates, along with the total lending and repayment prices, are computed based upon the value used as security. The borrower can select the period over which a loan is paid back. The fixed-rate loans offer a maximum of 120 day period. After 120 days, it is automatically transitioned into a variable-rate loan.
The Margin wallet of a borrower will contain the private loan. This results in a reduction in their regular interest rate. Borrowers will have to handle their own risk of the volatile LINK price.
To acquire access to Bitfinex Borrow, Bitfinex customers will be confirmed at the intermediate or complete level. The customers verified at the intermediate or full level can extract cryptocurrencies from the platform.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
