BTC

$98347.5

4.19%

ETH

$3368.652

9.45%

BNB

$623.649

2.62%

XRP

$1.282

15.87%

Blockchain

CF Benchmarks Launches Bitcoin Interest Rate Curve As Lenders Continue To Raise Saver Yields

September 28, 2022 - Around 2 mins mins to read

In collaboration with Chainlink, the cryptocurrency indexing company CF Benchmarks has unveiled a bitcoin interest rate curve.

CF Benchmarks Launches Bitcoin Interest Rate Curve As Lenders Continue To Raise Saver Yields
CF Benchmarks Launches Bitcoin Interest Rate Curve As Lenders Continue To Raise Saver Yields

The CF Bitcoin Interest Rate Curve will calculate borrowing and lending amounts for bitcoin using data from three separate sources: futures exchange transaction data, DeFi lending protocols like Aave or Compound, and OTC crypto lenders. This data is used to generate the interest rate curve, which CF Benchmarks hopes will make borrowing and lending in the cryptocurrency industry more efficient.

The company contributes data to the interest rate curve from the Chicago Mercantile Exchange (CME), Bitmex, FTX, OKX, ByBit, Aave, and Compound, among others.

By making each point on the curve “representative, repeatable, and efficient,” the company claimed it hoped to make it easier to create financial products like interest rate derivatives contracts.

Chainlink has been working on the product as a partner with CF Benchmarks

CF Benchmarks Launches Bitcoin Interest Rate Curve As Lenders Continue To Raise Saver Yields
CF Benchmarks Launches Bitcoin Interest Rate Curve As Lenders Continue To Raise Saver Yields

Since January, Chainlink has been working on the product as a partner with CF Benchmarks, according to Ghando. Crypto credit lending has seen a tumultuous era in the interim.

After the Terra blockchain collapsed in May, it became extremely difficult for cryptocurrency lenders to operate, which caused some people to experience a credit crisis in June. Companies like Voyager and Celsius have now declared bankruptcy; the assets of the former were bought at auction by FTX, while the CEO of the latter was had to resign on Tuesday.

Some lenders were compelled to lower their rates at this time to entice additional borrowing. However, once loan rates increased in August, this tendency started to turn around.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

CoinCu News

#Bitcoin

BTC

CF Benchmarks

Chainlink

cryptocurrency indexing

Rate Curve

Avatar of Annie

Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
Blockchain

CF Benchmarks Launches Bitcoin Interest Rate Curve As Lenders Continue To Raise Saver Yields

In collaboration with Chainlink, the cryptocurrency indexing company CF Benchmarks has unveiled a bitcoin interest rate curve.

CF Benchmarks Launches Bitcoin Interest Rate Curve As Lenders Continue To Raise Saver Yields
CF Benchmarks Launches Bitcoin Interest Rate Curve As Lenders Continue To Raise Saver Yields

The CF Bitcoin Interest Rate Curve will calculate borrowing and lending amounts for bitcoin using data from three separate sources: futures exchange transaction data, DeFi lending protocols like Aave or Compound, and OTC crypto lenders. This data is used to generate the interest rate curve, which CF Benchmarks hopes will make borrowing and lending in the cryptocurrency industry more efficient.

The company contributes data to the interest rate curve from the Chicago Mercantile Exchange (CME), Bitmex, FTX, OKX, ByBit, Aave, and Compound, among others.

By making each point on the curve “representative, repeatable, and efficient,” the company claimed it hoped to make it easier to create financial products like interest rate derivatives contracts.

Chainlink has been working on the product as a partner with CF Benchmarks

CF Benchmarks Launches Bitcoin Interest Rate Curve As Lenders Continue To Raise Saver Yields
CF Benchmarks Launches Bitcoin Interest Rate Curve As Lenders Continue To Raise Saver Yields

Since January, Chainlink has been working on the product as a partner with CF Benchmarks, according to Ghando. Crypto credit lending has seen a tumultuous era in the interim.

After the Terra blockchain collapsed in May, it became extremely difficult for cryptocurrency lenders to operate, which caused some people to experience a credit crisis in June. Companies like Voyager and Celsius have now declared bankruptcy; the assets of the former were bought at auction by FTX, while the CEO of the latter was had to resign on Tuesday.

Some lenders were compelled to lower their rates at this time to entice additional borrowing. However, once loan rates increased in August, this tendency started to turn around.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

CoinCu News