Author Topic: Crypto bank high interest rate  (Read 2520 times)

maizefolk

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Re: Crypto bank high interest rate
« Reply #50 on: March 15, 2021, 05:46:59 PM »
Not just institutions.  I borrowed tether to leverage up for a few weeks, and am paying about 50% APR. 0.15% Daily.  About $90 day/BTC.

Did you have to post collateral? If so, how did it work?

SuperSecretName

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Re: Crypto bank high interest rate
« Reply #51 on: March 15, 2021, 05:51:18 PM »
Not just institutions.  I borrowed tether to leverage up for a few weeks, and am paying about 50% APR. 0.15% Daily.  About $90 day/BTC.

Did you have to post collateral? If so, how did it work?
Yeah.  It's on an exchange, so the borrowing and the repay are integrated into the order book.  Can go max 5x leverage (so borrow 4 for every 1)  Not good long-term, but great for high-conviction moves.

Interestingly, borrowing BTC to short is 90% cheaper at .01% daily.

joe189man

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Re: Crypto bank high interest rate
« Reply #52 on: June 10, 2021, 03:56:25 PM »
how are these crypto banks working out for you guys?

HeadedWest2029

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Re: Crypto bank high interest rate
« Reply #53 on: June 11, 2021, 03:17:26 PM »
So far so good as a retail investor. Although they had a pretty embarrassing botched promotion https://www.coindesk.com/blockfi-botched-promo-payments-april-confusion
Luckily it looks like they limited the loss to less than $10 million (could be much less now).  The risk will always be security hack, poor lending practices, or just plain screwups that threaten their solvency. It sounds like they're doing another investing round for $5 billion so that pads their books further. They almost have to I'd imagine with how quickly they are growing. Average retail account balance has grown from $10k to $50k. 

Dgmp

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Re: Crypto bank high interest rate
« Reply #54 on: June 11, 2021, 07:31:28 PM »
I got nervous with the big drop in bitcoin and took my 50k stablecoin balance down to 20k and took 30k In cash back to my checking account.  Withdrew no problem.

Id like to get back in higher after a few more months to rule out the chance that the crypto cut in half price caused financial problems for them.

They did some really high July APR promotions that made me a bit nervous.