Users of crypto exchange Bitfinex will now get yield over their deposits. The exchange recently partnered with the crypto borrowing and lending platform Celsius Network.
Handsome rates of return
The Celsius Network integration will bring up to 6.25% APY on Bitcoin. Bitfinex is planning to engage more users with the integration which helps them generate annual returns on funds. Celsius has over 100,000 active users on its app and it provides Ethereum holders interest rates of up to 9.65%. The two companies said that Bitfinex customers now directly open a wallet with Celsius.
It can be managed within the Bitfinex platform, adding more convenience to the users. They can withdraw their funds from Celsius wallets at any time. There will be no lock-in periods for the users and the platform will not charge any fee on deposits and withdrawals.
Interest on the deposits will be accrued daily but they will be paid on a weekly basis. Users can auto-renew their deposits for additional periods if the initial term expires. Celsius CEO Alex Mashinsky commented on the integration and said it
“extends the mission and focus of both companies to bring the next 100 million people into the crypto community and do it while we do good before we all do well. Celsius’s commitment to reward our users with 80% of the value we create is now available to all Bitfinex customers.”
Bringing better liquidity to the platform
Celsius aims to add more liquidity to its platform. It currently lends digital assets to investment funds, miners, retail investors as well as digital asset companies. All loans are given ‘on a guaranteed and collateralized basis.’
It gives its clients access to a number of services like instant depositing in digital assets on the Celsius wallet. It can also use digital assets as collaterals for availing fiat loans. At least 80% of the returns from the entities are passed on to the asset holders.