By Solomon Odunayo
Bitfinex, the leading cryptocurrency exchange, has announced the addition of Tezos (XTZ) as collateral on Bitfinex Borrow, a peer-to-peer digital currency loan portal.
According to the report, the customers of the exchange will be able to obtain about 70% loans of the value of their XTZ holdings in US Dollars.
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XTZ Now Available For Selection as Collateral on Bitfinex Borrow
The report stated that Tezos (XTZ) is now included for selection from the list of currencies that borrowers wish to use as collateral.
Bitfinex tweeted, “Tezos has been added to Bitfinex Borrow! Users can now obtain a loan using their XTZ as collateral. Using Bitfinex Borrow is intuitive and straightforward. Discover now all the details about using Tezos as collateral.”
Tezos has been added to Bitfinex Borrow! Users can now obtain a loan using their $XTZ as collateral.
Using Bitfinex Borrow is intuitive and straightforward. Discover now all the details about using @tezos as collateral⬇️https://t.co/jMXol1ZEnP pic.twitter.com/2dqsrMaiQC
— Bitfinex (@bitfinex) February 16, 2021
What Bitfinex Customers Need To Know
According to Bitfinex, a user can choose between a variable interest rate based on the Flash Return Rate (FRR) or a fixed-rate loan.
Many factors such as the amount used as collateral, the loan amount, borrowing period, and preferred interest rate option determine the annual and daily rates, coupled with the total lending and repayment amounts.
Moreover, borrowers are liable to choose the period over which a loan is repaid, but fixed-rate loans are to be repaid after 120 days. All fixed-rate loans are automatically converted into variable-rate loans once they expire.
Bitfinex noted:
“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.”
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In conclusion, only users that are fully verified by the exchange can borrow and withdraw fiat currencies from the platform.