Share this article
BlockFi Adjusts Interest Rates to Lure Larger Crypto Deposits
BlockFi recently announced it would make changes to the interest they pay for bitcoin and ether deposits.
Updated Sep 13, 2021, 12:11 p.m. Published Jan 24, 2020, 3:46 a.m.
BlockFi, one of the first lending startups in the cryptocurrency markets, announced Thursday it would make changes to the interest paid based on the yield it generates from lending bitcoin (BTC) and ether (ETH). The changes begin Feb. 1.
STORY CONTINUES BELOW
Verpassen Sie keine weitere Geschichte.Abonnieren Sie noch heute den Crypto Daybook Americas Newsletter. Alle Newsletter ansehen
Rates for litecoin (LTC) and Gemini dollar (GUSD) will remain unchanged, according to BlockFi.
In an email to CoinDesk, Blockfi CEO Zac Prince said the crypto market is starting to “position more bullish”, which brings yields for lending bitcoin (and ether) down.
“As market conditions change, particularly price sentiment, this has an effect on the prices in the crypto borrowing market which is a big driver of rates that BlockFi can offer to our clients,” Prince said.
Werbung
BlockFi's new yields for those lending up to 10 BTC (its "Tier 1" customers) will be 5.1 percent. Right now, customers loaning up to 5 BTC see a yield of 6.2 percent. Likewise, their Tier 1 ETH lenders will also see a rate cut to 3.6 percent on loans of up to 500 ETH from 4.2 percent for lending 1,000 ETH.
On the other hand, yields will increase by a modest margin for users holding balances above 5 or more BTC ("Tier 2") to 3.2 percent from 2.2 percent. (Tier 2) while ETH lenders will see a yield increase to 2 percent, up from 0.5 percent for more than 500 individual ETH (Tier 2).
“Our rates are still way ahead of alternative options and we remain the only retail-focused interest-earning platform that is US-domiciled/regulated, institutionally backed and doesn't have a utility token,” Prince said.
More For You
Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
Top Stories
