Topic: [OFFICIAL]Bitfinex.com first Bitcoin P2P lending platform for leverage trading - page 356. (Read 723990 times)

what? verify? I thought this wasn't going to happen?!?

Oh I missed this earlier,
and now I have to verify myself by providing ID and a recent telco bill.

It would be nice if Bitfinex would publish a detailed lending data feed. Whenever a loan is taken out or repaid, include the amount, term, date/time it was lent, and date/time that it was repaid (if applicable) in the feed. This would allow us to create charts to visualize the movements of the lending market, and better target our offers and demands.

Price discovery on interest serves important function in the market. All lending has risk and this is reflected on the lending rate.

Lending has risk, just because it is covered by the exchange doesn't mean it won't blow up and everyone end up losing most if not all of their money. By providing the facility for insuring lenders, this reduce the risk for both lenders and insurance agent (risk is splitted according to the lending rate and insurance rate). When things go bad, trader will have to eat all loss first, then any remaining fund will go to lender, if it isn't enough, it will then be covered by insurance agent. Trader has the highest risk in this process and then the lender, then the insurance agent (Warren Buffet got extremely wealthy by providing this service).

All parties will of course have their own money and asset as collateral. Trader will have to follow certain leverage rules/ratio and be forced to liquidate to protect lender. In the event things went badly, lender will be covered by insurance agent. This of course will mean the lender will need to pay for the agent service in the unlikely event that systemic crash happen. And not expecting the exchange to bail them out if they don't have insurance.

This service add value to the exchange by strengthening the system. It removes the need for the exchange to set aside any money and remove them the responsibility of monitoring the market condition.

Interest rate trading - low priority. Unnecessary complication and zero-sum (it wouldn't benefit users of the site - it'd just move money around and complicate the lending market which is already volatile.)

Expanding the insurance - I'm not sure why anyone would invest in it as they'd make 4-10 times more money by loaning it out and have lower risk (if 20% ofl the loans default - you lose 100% if you are doing insurance, whereas you only lose 20% if you are loaning out money.)  I don't think relying upon people to make poor investment decisions is a good long term business practice.  Note: all of my loans are insured when possible because it is a great deal for the lender and horrible deal for the insurer.

I'm not sure how you could provide insurance without using your own money.  It needs to be backed up by assets that are directly controlled by BFX.

Is it possible to do interest rate trading using the platform?

For instance, borrow all the currently available fund and then re-list them even higher rate?


Maybe they should implement a way for people to insure the borrow fund. Then they don't have to put up a dime of their own money and still get paid on commission.

I borrow USD to buy Bitcoins - simple margin trading.

The question is, pf course, if someone believes the exchange rate will go up or down - then do some margin trading accordingly. Or, with zero volatility risk, drop Bitcoins or USD on Bitfinex and feed the ever hungry margin traders ;-)
Kostolany would like the latter idea - talking about goldrush and selling shovels and all..

Ente

up a lot again

Borrowing the USD is not for arbitrage; however, it is not uncommon to see BTC prices move 10 - 20% over a day or two.  Given that paying 1-2% a day to borrow funds for the short-term can be a very profitable endeavor if timed correctly.

I think a lot of people withdrew their money when the rates were getting low due to low volatility, and they felt that it wasn't worth the risk anymore. 
That plus the fact that maybe some people also did the arbitrage thing with gox, leaving less cash at bitfinex.
Now there is suddenly more action in the market, and little cash in bitfinex.  As a lender, it's great for the moment, but it will change again as people bring in more money.

Sound like you either do some lending or borrowing.  What is the reason people paying such rate?

Based on what I read so far, trader can only use the borrow money on margin trading. And they can't move the coin out, so arbitrage is out of question.  I never know margin trading can provide such return. What is their liquidation policy on margin trading?

No, this is no blip. Interestrates spike in the three- and four digits every other day now. Yes, you read that right, 1000% to 2000% interest on USD on Bitfinex! Normally it drops to "just" 100% to 200% again soon.
So, obviously there is quite a demand for USD.
How to make that incredible opportunity public?
"Hello, yes, more USD, please! Yes, yes, a lot! Yes, insurance is possible!" :-)

No, seriously, we need more of that stinkin' papermoney over here.

Ente

After all the work and organisation they put into this - I highly doubt they plan to scam anyone.
This is one of the few professional projects in Bitcoinland.

I was just about to ask if the page works for anyone on Android. It gives me a "500" on firefox, but does work on the native browser. Nice, so I don't have to close my position on holidays!

Ente

Their platform and idea are sound. Would hate to see them fail or turn out to be scam at this point.

In the long term, they will probably make more money doing it legitimately than trying to scam people.

10k of what? I guess USD...

Since they seem to change and add business partners more often than some people change their underwear, I don't think experiences from even a few weeks ago are truly relevant.

Anyone here with 10k+ on the exchange want to share their experience as far as trust and reliability is concerned?


Were you able to move money/bitcoin in and out quick?

Those interest rates were a strange blip. It didn't last long. But it was there and strange to see.

I see. I had money stucked in Gox for over a month and not able to move it out. Normally I arbitrage between bitstamp and coinbase but the profit isn't really worth the risk after wire fee and commission.

The interest rate of 1630%, how safe is your money? Why anyone bother to do anything other than lending if people willing to pay such high rate. Anyone with credit card can max it out and do carry trade still make a decent profit with that rate.

Your username is arbitrage001 and you want me to explain arbitrage ?  Loving the irony here (though probably my post was just too unclear, and you thought the 1630% had something to do with the arbitraging).

I had fiat on bitfinex and BTC on gox.  Gox price was higher than bitfinex/bitstamp.  Sold some coins on Gox, bought same amount of cheaper coins on bitfinex --> profit.
Some time later, Bitfinex/Bitstamp prices were a bit higher than Gox for a short time.  Sold the coins at Bitfinex, rebought the coins at gox --> little bit of profit, and fiat back at bitfinex.   Arbitrage cycle completed.
The last part is just that my fiat was right back on time to get some awesome % loans as a lender at Bitfinex.

Anyone kind enough to explain the mechanic and math ?