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Loans have max 50% LTV and their loan rates are at least 4.5%. They must be reinvesting elsewhere similar to other bank models just a lot riskier, more opaque,
by yellow_postit 5y ago
Loans have max 50% LTV and their loan rates are at least 4.5%.
They must be reinvesting elsewhere similar to other bank models just a lot riskier, more opaque, and less regulation (for now).
They’ve meaningfully cut interest rates over time as well often in response to market volatility.
- notahacker 5y agoNot sure borrow at 9% to lend at 4.5% is that similar to bank business models...
- masonium 5y agoTheir actual rates on most cryptos are much lower than 9%. https://blockfi.com/rates/ https://blockfi.com/rates/ BTC is 0.1% above 0.35 BTC. ETH is 0.25% above 5 ETH. I think we can agree these are not high rates. On the flip side, the rates for stablecoins (GUSD, USDC, USDT) are quite high still, at 7.75%. But it's not impossible to imagine institutions borrowing stablecoins at higher rates than that.