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.

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

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.

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