Bitfinex Borrow Adds SOL Token As Collateral

The Solana network has increased its prominence in the crypto market steadily, and this news proves its long-term relevancy.

By
Utulu Hope
on
June 9, 2021
Category:
Breaking News

Introduction

Bitfinex has now added SOL to its borrowing platform, meaning the world's leading digital asset trading platform’s users can now obtain a loan using their SOL as collateral. In its official blog publication, Bitfinex disclosed that they are pleased to announce the addition of Solana (SOL) as collateral on Bitfinex Borrow. As the platform has higher standards on what tokens they accept for collateral, this is a very big step forward for the SOL token.


Bitfinex Borrow Adds SOL Token 

Bitfinex Borrow is a platform that allows users to borrow funds from other users by using their crypto assets or fiat currencies as collateral. By utilizing its transparent peer-to-peer (P2P) feature, users can borrow against margins using digital collateral with ease. The platform offers other benefits such as high rewards and flexibility. Collaterals such as Bitcoin and Ethereum are available on the platform, and now, SOL — the native token of Solana's fast blockchain, is the latest to be added. 

Source

The addition of SOL means that users can obtain loans of about 70% of their SOL holdings in US Dollars and Tether (USDT). Borrowers can choose SOL from the list of cryptocurrencies that they wish to use as collateral before depositing sufficient collateral into their Margin wallet. The Margin wallet on Bitfinex is used for trading leveraged short and long positions. However, borrowers will be required to manage the risks of fluctuations in the price of SOL, meaning that their necessary collateral amount could change after deposit. 


What Does This Mean For Solana? 

Bitfinex is a top name when it comes to trading. Its borrowing platform currently supports up to 18 digital assets as collateral, including newly added SOL and some other fiat currencies like USD, JPY, and EUR. The addition of SOL means that the Solana ecosystem has gained prominence in the crypto market like Ethereum and the Binance Smart Chain. With this addition, Solana sits up there with Bitcoin, Ethereum, Link, and Litecoin, to name a few of Bitfinex’s accepted assets. 


Bitfinex Borrow 

Source

Bitfinex Borrow is a P2P platform that allows users to borrow funds from users, providing cryptocurrency assets as collateral. As a borrower, there are no limitations on the way you use funds borrowed on Bitfinex Borrow. Users also have the license to set loan duration and terms of interest to suit their situation and needs. 


Final Thoughts 

This is yet another breakthrough for the Solana ecosystem. Now that users can use SOL as collateral to borrow funds on arguably the most significant trading platform, more users will keep hold of SOL. With this, SOL has a new use case. Not just any use case, but one which is significant for the development of Solana. What else can we expect from Solana amidst the monumental achievements? More adoption, more growth, and development as the sky remain the starting point.


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Utulu Hope

UC Hope is a passionate fan of crypto who could weave the latest event into sparks of inspiration and information. He leaves no stone unturned to get to the core of a story. Aside from writing, he spends his hours poring over algorithms and protocols, preparing for a future career as a computer programmer.