Bitfinex USD Funding (Loans) - Huge ROI

Hey everyone,

Who here has experience using the Bitfinex Funding option for USD? Did you know you can lend out your balance for up to 0.25% per day? At 0.25% interest, you're earning 248% per year on your capital. Barring a massive collapse on the exchange, your loan is fully collateralized, so no major risk of default.

The risk you're taking is keeping money on Bitfinex, which is an exchange that got hacked a couple years ago and forced users into taking some debt tokens in exchange for about 35% of their balance. Despite that, Bitfinex is now back to being one of the top exchanges by volume in the world.

So yeah, anyone have some experience with funding on Bitfinex, and perhaps some strategies to maximize their returns?

 

Your talking about loaning out Tether not USD! Many people do not think they have the 400m they claim to have. How do they make money? Look up tether of coinmarketcap.

Loans have a 15% maintenance fee. Also the loan rate will drop down to like 10% once we move past the forks.

 

I haven't done that, but have heard good things for funders during bull-runs.

Also, Bitfinex is halting all US customers by Nov. 9th, so not sure if this is the best option anymore. Sure there are VPNs and such, but not sure how some feel about the regulations Bitfinex is now following by getting rid of their US customer base. Not to mention they'd no longer have USD as a fiat option. (as far as I'm aware)

 

But it is not USD. People think they are loaning out usd however that is not the case lol.

 

No it will drop down to 10% annum. The lending market is very competitive and filled with people loaning millions of dollars. You see the interest rates spike whenever uncertainly in the market appears. for example when bitcoin cash forked on august 1st i was getting 5% daily on 60 day loans because people thought they were going to lose bitcoin somehow lolol. I put out hunreds on .01 loans out compared to one big loan so i wouldn't lose my rate in the event one guys just closes the loan.

When you open a loan you pick a duration between 2-60 days however the person borrowing the money has the option to close the loan at any given time. once the loan is closed your assets are returned and the 15% is deducted from your profits.

Anyways, i only loan out coins and not usdt for the exact reason you stated. i think btc is around .012ish daily atm.

 

Poloniex Lending Rate History

When the interest rates are low i go for 2 day loans and when they're good i try to do volume based lending where i split my coins up and try to lock down those 60 day loans.

 

I would have to look though all my previous loan history but over 100%. I had some of those 5% loans run for the full 60 days.

 

I mean, to say you'd get 44% ROI on money you invest today on the major cryptos is very speculative. Obviously you could get 44% or a bunch more, but you could very well lose a ton as well. Crypto has had plenty of dark days to go along with its glory days. Past performance does not dictate future performance.

I have my positions in crypto, but at this point I am not looking to increase them. I think lending USD on Bitfinex is a good way to get some good returns without exposing yourself heavily to the crypto market. I say that because you are still indirectly exposed to an extent because Bitfinex as a company is certainly a bit shaky, and their company's health is correlated to the success of the crypto market.

In comparison to what you can expect from a diversified portfolio of stocks, which is 5-6% per year, Bitfinex lending obviously offers much better returns. You can also lend out BTC for some good rates as well. Right now it's being lent for as much as 0.25% per day (past hour). People can cancel their loans and only face the penalty of paying the most recent hour rounded up though. So the rate right now may not be indicative of what you'll really earn. But yeah, this way you get to keep your exposure to crypto and still earn interest.

 

It sounds nice in theory but I don't trust exchanges, if you shouldn't keep ur coins on exchanges then pray tell why would you keep a large amount of capital sitting there being loaned out to people u don't even know?

I wont ever be doing this personally, yeah 248% sounds great until the exchange gets hacked or closes down and you lose 3/4 ur balance.

 

you are loaning USDT not USD.

What are Tethers?

The Strange Story of Tether, the Digital Money That Claims it Isn’t Money

Withdrawal USDT from Bitfinex.com issues!

Tether (USDT) price, charts, market cap, and other metrics | CoinMarketCap

@Divine @Sythe

 

Right, Tether is sketchy. Bitfinex is a bit sketchy. But it would take a pretty big crypto crash to expose anything. They're absolutely printing money in the current environment, and the market is pretty confident in Tether. It's been valued @ 1 USD for months.

So yeah, i wouldn't go all in on this investment or anything, but throwing some USD on there and lending out an amount you can afford to lose in the worst case is probably a +EV investment. I suggest withdrawing your gains every month to further reduce counterparty risk.