(Who is one of the guys who pays those incredible rates)
I'm quite sure they're leverage traders and they don't pay too much attention on the rate. They just see a trading opportunity worth much more than the current liquidity rate, so they take a leveraged position at the current rate 
Topic: [OFFICIAL]Bitfinex.com first Bitcoin P2P lending platform for leverage trading - page 284. (Read 723903 times)
January 27, 2014, 12:05:43 PM
January 27, 2014, 11:41:58 AM
Silly question here.. but I noted the swap rates for USD is quite high, 0.28% a day? Isn't that possible to make a lot of money in a year from just offering USD?
People using BitFinex can choose between buying Bitcoins and offering USD. So the "liquidity providing rates" naturally are somewhere in the area of historic and/or expected Bitcoin exchange rate grows minus the exchange rate risk.
That's why the rates are ridiculously high compared to regular, old stuff from the offline world.
So yes, please provide dollars. You'll receive mindboggling rates, compared to anything non-Bitcoin-related. And tell all your friends too! :-)
Ente
(Who is one of the guys who pays those incredible rates)
January 27, 2014, 11:15:02 AM
I enjoy Bitfinex, but it isn't clear if they are impacted by new Chinese regulations... Previous posts by the founders haven't made it clear what percentage of their bank funds are in Hong Kong vs Shanghai (Pudong).
EDIT: I missed this post https://bitcointalksearch.org/topic/m.4007805 Seems to make things clear.
January 27, 2014, 11:02:51 AM
Silly question here.. but I noted the swap rates for USD is quite high, 0.28% a day? Isn't that possible to make a lot of money in a year from just offering USD?
Actually it is quite low at the moment...
This is a chart displaying the Lowest USD liquidity offer over time for the last month. Rates tend to get much higher...
January 27, 2014, 10:26:22 AM
Silly question here.. but I noted the swap rates for USD is quite high, 0.28% a day? Isn't that possible to make a lot of money in a year from just offering USD?
January 27, 2014, 09:42:18 AM
Hi every one!
I am currently looking to get my money out of Mtgox and was looking at bitfinex for that purpose.
How trust worthy do you guys think is bitfinex? Are there any information available about them, is it just a one man operation or do they have employees/support agents, etz. ?
If you could let me know your opinion and experience, I would greatly appreciate it.
I am currently looking to get my money out of Mtgox and was looking at bitfinex for that purpose.
How trust worthy do you guys think is bitfinex? Are there any information available about them, is it just a one man operation or do they have employees/support agents, etz. ?
If you could let me know your opinion and experience, I would greatly appreciate it.
You might want to consider BitStamp. I enjoy Bitfinex, but it isn't clear if they are impacted by new Chinese regulations... Previous posts by the founders haven't made it clear what percentage of their bank funds are in Hong Kong vs Shanghai (Pudong).
January 27, 2014, 06:44:15 AM
And, to pick up on a great suggestion from some pages ago:
Create a button where liquidity providers can extend the active time!
Ente
That would be useful for both parties. Good idea!
+1
Another suggestion: the option to sort the margin swaps history by "Closed at" instead of "Opened at"
January 27, 2014, 04:58:59 AM
And, to pick up on a great suggestion from some pages ago:
Create a button where liquidity providers can extend the active time!
Ente
That would be useful for both parties. Good idea!
January 27, 2014, 04:14:00 AM
[..] This FRR really skews thing completely.
I like it. I do both liquidity "providing" and "taking" (on a smaller scale). As a taker, I can get larger sums without much slippage, most of the time. As a provider, I hit "auto", and everything works by itself. Yes, the rate isn't the maximum I could get by doing it manually, but with having the funds out nearly 100% of the time it's much more than doing it manually and having it in offers only.
And, to pick up on a great suggestion from some pages ago:
Creata a button where liquidity providers can extend the active time!
Ente
January 26, 2014, 02:44:38 PM
Hi every one!
I am currently looking to get my money out of Mtgox and was looking at bitfinex for that purpose.
How trust worthy do you guys think is bitfinex? Are there any information available about them, is it just a one man operation or do they have employees/support agents, etz. ?
If you could let me know your opinion and experience, I would greatly appreciate it.
I am currently looking to get my money out of Mtgox and was looking at bitfinex for that purpose.
How trust worthy do you guys think is bitfinex? Are there any information available about them, is it just a one man operation or do they have employees/support agents, etz. ?
If you could let me know your opinion and experience, I would greatly appreciate it.
January 26, 2014, 01:54:14 PM
a
The FRR does help dampen the sometimes crazy swings of the best interest rate as provides a form of mid-market rate for the lazy.
The situation is a bit asymmetric though.
In an up market, traders are at an advantage because their default settings is to pick either fixed or variable rates, whichever is lower, and they can sometimes snag some FRR offers when the rate lags. On the other hand, lenders have to decide whether they want to (auto-)loan at fixed or variable rate, but not both.
This causes the situation where offers are either taken at a suboptimal rate or not at all (since there's a better offer on the other side of the FRR/Fixed choice).
It would greatly help if FRR had some other form of incentive, such as lower fees or liquidity guarantees.
I really think they should take away the flash return rate concept. Every lending offer / borrowing request should be either limit order or market order (ie. hitting up the lowest available lending offer or highest borrowing request).
The FRR does help dampen the sometimes crazy swings of the best interest rate as provides a form of mid-market rate for the lazy.
The situation is a bit asymmetric though.
In an up market, traders are at an advantage because their default settings is to pick either fixed or variable rates, whichever is lower, and they can sometimes snag some FRR offers when the rate lags. On the other hand, lenders have to decide whether they want to (auto-)loan at fixed or variable rate, but not both.
This causes the situation where offers are either taken at a suboptimal rate or not at all (since there's a better offer on the other side of the FRR/Fixed choice).
It would greatly help if FRR had some other form of incentive, such as lower fees or liquidity guarantees.
Let me be cynical and think from platform perspective first, having all these lending offer / borrowing request not filled is sub-optimal for bitfinex it self in lost commission. Having wild swing in interest rate is actually not a big problem for bitfinex, it spurs more borrower to adjust to try to take advantage of low interest rate, ie. more commission for them. I just see the game tilted too much toward the borrower side, lately, we see a couple of hundred thousands pop up on the FRR on the borrowing side and interest rate keep getting manipulated down despite margin loan at or near all time high. The FRR, to be honest, doesn't really offer much for the lender, you will not get neither a guarantee rate (assuming the order is filled) nor the optimal rate.
Beside, most asset market (stock, bond, etc.) order book is all limit or market order base. This FRR really skews thing completely.
January 26, 2014, 01:37:40 PM
a
The FRR does help dampen the sometimes crazy swings of the best interest rate as provides a form of mid-market rate for the lazy.
The situation is a bit asymmetric though.
In an up market, traders are at an advantage because their default settings is to pick either fixed or variable rates, whichever is lower, and they can sometimes snag some FRR offers when the rate lags. On the other hand, lenders have to decide whether they want to (auto-)loan at fixed or variable rate, but not both.
This causes the situation where offers are either taken at a suboptimal rate or not at all (since there's a better offer on the other side of the FRR/Fixed choice).
It would greatly help if FRR had some other form of incentive, such as lower fees or liquidity guarantees.
I really think they should take away the flash return rate concept. Every lending offer / borrowing request should be either limit order or market order (ie. hitting up the lowest available lending offer or highest borrowing request).
The FRR does help dampen the sometimes crazy swings of the best interest rate as provides a form of mid-market rate for the lazy.
The situation is a bit asymmetric though.
In an up market, traders are at an advantage because their default settings is to pick either fixed or variable rates, whichever is lower, and they can sometimes snag some FRR offers when the rate lags. On the other hand, lenders have to decide whether they want to (auto-)loan at fixed or variable rate, but not both.
This causes the situation where offers are either taken at a suboptimal rate or not at all (since there's a better offer on the other side of the FRR/Fixed choice).
It would greatly help if FRR had some other form of incentive, such as lower fees or liquidity guarantees.
January 26, 2014, 01:13:28 PM
I really think they should take away the flash return rate concept. Every lending offer / borrowing request should be either limit order or market order (ie. hitting up the lowest available lending offer or highest borrowing request).
January 25, 2014, 08:27:50 PM
my wire completed and money's in the bank. 3 days as stated.
Now that BTC prices is back over 800 but the margin loan outstanding is down to 16.25 million. People are lightening up as the price rises. The rally will probably see some headwind as margin loan unwinds and flash return rate is down below 0.2
That's just my 2 cents.
Now that BTC prices is back over 800 but the margin loan outstanding is down to 16.25 million. People are lightening up as the price rises. The rally will probably see some headwind as margin loan unwinds and flash return rate is down below 0.2
That's just my 2 cents.
Interesting. That's good to hear that bfx is on top of wires!!!
Are you saying that bfx has the power to move a market because they operate like 40-55% of btsp's trades?
I'll just add my thumbs up to this: Did 3 wire withdrawals from BFX so far, the last one was a week ago (after they introduced the "pay me faster"-feature which I didn't make use of) and I even mistyped my account # which I corrected minutes later by contacting their support and even that wire arrived within less than 24hrs! In fact they all arrived between 15 and 22 hours after submitting the form which is kind of amazing.
But: I'm not too impressed that you always have to re-enter your entire account details (like BIC and the bank's address and whatnot) every time you want to wire-withdraw some money. It would be really nice to have a feature like "Bank management" in there somewhere.
January 25, 2014, 06:38:51 PM
my wire completed and money's in the bank. 3 days as stated.
Now that BTC prices is back over 800 but the margin loan outstanding is down to 16.25 million. People are lightening up as the price rises. The rally will probably see some headwind as margin loan unwinds and flash return rate is down below 0.2
That's just my 2 cents.
Now that BTC prices is back over 800 but the margin loan outstanding is down to 16.25 million. People are lightening up as the price rises. The rally will probably see some headwind as margin loan unwinds and flash return rate is down below 0.2
That's just my 2 cents.
Interesting. That's good to hear that bfx is on top of wires!!!
Are you saying that bfx has the power to move a market because they operate like 40-55% of btsp's trades?
January 25, 2014, 03:19:07 PM
my wire completed and money's in the bank. 3 days as stated.
Now that BTC prices is back over 800 but the margin loan outstanding is down to 16.25 million. People are lightening up as the price rises. The rally will probably see some headwind as margin loan unwinds and flash return rate is down below 0.2
That's just my 2 cents.
Now that BTC prices is back over 800 but the margin loan outstanding is down to 16.25 million. People are lightening up as the price rises. The rally will probably see some headwind as margin loan unwinds and flash return rate is down below 0.2
That's just my 2 cents.
January 25, 2014, 01:27:51 AM
I do believe the rate @ btsp is a lil high. But the bfx rate is awesome.
Also having margin min @ 12.5 or 10 would be even cooler.
Also having margin min @ 12.5 or 10 would be even cooler.
January 24, 2014, 04:01:10 AM
The low 2.5:1 leverage is intended to protect lender's money. If the leverage changes to 8:1, lender will have to bear a much greater risk provided bitfinex's current liquidity level. I'll stop lending if it goes to anything close to 8:1.
I'd offer my money (or parts of it) for 8:1 lending if I could define the maximum leverage as a parameter like the lending time frame or rate. I'd charge a premium for that of course.I probably can still do 4:1 leverage by the way (haven't tried, not that interesting market situation imho atm.) on my account.
edit: And just while I'm ranting, someone took my 0.4% offer!
Also another shoutout to my affiliees (or whatever you'd call people I refered with the link in my sig) - some of you guys have some truly crazy volume!
Go for it and I hope you made some phat profits! January 24, 2014, 03:31:50 AM
The low 2.5:1 leverage is intended to protect lender's money. If the leverage changes to 8:1, lender will have to bear a much greater risk provided bitfinex's current liquidity level. I'll stop lending if it goes to anything close to 8:1.
Me too, Bitcoin is too volatile to allow that kind of leverage, margin calls would happen very often.
January 23, 2014, 11:56:31 PM
Rates should be on a long-term downward trend. I wouldn't be surprised if they fell to an average of 0.08%/day (or 30% apr) for six months. Especially if bitfinex shows more signs of having all the paperwork in order and bitcoin volatility declines. Now if we hit a longterm bear market, then rates are headed to near zero .
Jump to: