How does BlockFi provide interest on cryptocurrency deposits?

3 answers

• Dec 30, 2021 · 3 years ago
  Sure! BlockFi is able to provide interest on cryptocurrency deposits by lending out the deposited funds to institutional borrowers. They carefully select borrowers and collateralize the loans to minimize risk. The interest earned from these loans is then shared with the depositors, allowing them to earn passive income on their cryptocurrencies. This model is different from traditional banking where interest is earned by lending out fiat currency deposits.
  459230
• Dec 30, 2021 · 3 years ago
  BlockFi provides interest on cryptocurrency deposits through a process called lending and borrowing. When you deposit your cryptocurrencies with BlockFi, they lend them out to borrowers who need them. These borrowers provide collateral to secure the loans. The interest paid by the borrowers is then distributed to the depositors as interest. It's a win-win situation where borrowers get access to funds and depositors earn interest on their holdings.
  451151
• Dec 30, 2021 · 3 years ago
  BlockFi partners with lending institutions to provide interest on cryptocurrency deposits. When you deposit your cryptocurrencies with BlockFi, they lend them out to borrowers through their lending partners. The borrowers pay interest on the loans, and a portion of that interest is passed on to the depositors as interest. This allows you to earn passive income on your cryptocurrencies without the need to actively trade or invest in risky assets. It's a great way to make your crypto work for you!
  500125