Cryptocurrency exchange Bitfinex has come into a new partnership with Celsius Network, a cryptocurrency lending, and borrowing platform, to allow its customers earn a return of up to 6.2% APY on Bitcoin.
In a push to engage more investors, Bitfinex users can now leverage their funds to generate annual returns under the new partnership between the popular exchange and the crypto lender.
The two companies revealed many details about the deal specifications. Under the terms of the partnership, the integration will allow Bitfinex customers to directly create a wallet with Celsius and manage it without leaving the crypto platform. They are also allowed to withdraw their crypto from Celsius at any time, with no lock-in periods and no fees on deposits or withdrawals.
Interest is being accrued daily, compounded and paid by Celsius at weekly intervals, and users will have the option to auto-renew for additional periods after their initial term expires.
“Our integration with Bitfinex extends the mission and focus of both companies to bring the next 100 million people into the crypto community and do it while we do good before we all do well. Celsius’s commitment to reward our users with 80% of the value we create is now available to all Bitfinex customers,” said Alex Mashinsky, CEO of Celsius.
Celsius is also expecting the addition to bring more liquidity to its platform. The startup lends the assets to miners, investment funds, retail investors, and other digital asset companies “on a guaranteed and collateralized basis.” It also allows clients to access several services such as instance depositing digital assets in the Celsius wallet and using their cryptocurrencies as collateral to get fiat loans. Eighty percent of returns from these entities are passed on to holders, the company says.
Founded in 2017, Celsius Network offers a decentralized lending platform that allows customers of stablecoin issuers, exchanges, and wallets to earn up to ten percent interest on their crypto-shares. Earlier this year, it has topped 50,000 Bitcoin in deposits worth over $568 million since its launch two years ago.