Bitfinex Unveils P2P, Automated Crypto Lending Service


Crypto exchange Bitfinex is set to launch a new automated, peer-to-peer crypto lending service that allows users to invest in the funding of secured personal and business loans. Dubbed ‘Lending Pro, the customizable tool manages the process on the customer’s behalf and based on specifications set by the user, as well as market conditions.

This allows users to streamline the management of their crypto lending while investing in loans originated, underwritten and booked by Bitfinex, and earn interest income. As such, the offering not only minimizes the fees accrued by middlemen, which in this case are typically levied by the lending protocol but also allows for greater efficiencies, resulting in a better deal for both counterparties.

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Lending Pro will go live in the first week of August. The new platform not only enables users to directly take out loans and receive funding in crypto within hours but also offers access to market data and price rates across the lending marketplace. This includes market depth analysis charts, rates calculated by Bitfinex’s margin lending automation tool, displaying a user’s cumulative holdings alongside a breakdown per cryptocurrency. This enables users to track their earnings and make educated choices in their credit requests.

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There is no centrally controlled interest rate, Bitfinex operates under the peer-to-peer model, ensuring that the interest rates are determined by supply and demand.

The new offering complements Bitfinex’s offering after it has launched its own staking platform, which allows clients to tap into rewards offered by certain types of cryptocurrencies running on proof-of-stake networks.

The use cases mentioned by Bitfinex tell us that the lending trends are shifting to reflect a reliance on digital assets to support business’ operations rather than for only betting on the short term price moves. Specifically, recent data shows substantial interest from the institutional players to borrow in order to facilitate a specific strategy such as for shorting, arbitrage, or working capital purposes.

“Lending Pro provides our users with a tool to automate peer-to-peer lending, and earn passive income on their crypto. By deploying advanced automated technologies we’ve created a tool that will help our growing user base maximise their earning efficiency on the crypto held on our exchange,” said Paolo Ardoino, CTO at Bitfinex.

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