BTC and ETH Holders to Score Big in the Revamped BlockFi Interest Structure

BTC and ETH holders are set to earn more in the revised BlockFi interest structure the firm has announced. According to Zac Prince, the firm’s founder cum CEO the changes take effect on April 1.

BlockFi Improved Offerings 

The announcement indicates that Tier 1 BTC holders with up to 5 BTC on the platform will earn a 6% annual percentage yield (APY). On the other hand, Tier 1 ETH holders, those holding up to 500 ETH on the platform will draw a 4.5% APY.

GUSD and USDC stablecoin holders will however still retain their  8.6% interest rates. Tier 1 BTC holders currently earn a 4.9% APY. Meanwhile, their Tier 1 ETH holders earn  3,6%.

Strongest Balance Sheet

Mr Prince attributed this move to two significant factors. First is the supply constraint occasioned by other market participants pulling back on their lending activities. Secondly, there are ample opportunities for market-making and arbitrage emanating from the extreme volatility that affected the previous week’s market.

Bitcoin live price
price change

Mr Prince further affirmed that the firm’s balance sheet is at the strongest its ever been. He acknowledged that movement in the institutional lending markets had provided BlockFi opportunities to expand its margin. He concluded that the firm timed its Series B capital funding in January well. As a result, it has adequate resources to sustain its rapid growth.

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