What are some examples of SOFR calculation in the cryptocurrency industry?

3 answers

• dqfJun 13, 2023 · 2 years ago
  Sure! One example of how SOFR is calculated in the cryptocurrency industry is by taking the average interest rate on overnight loans collateralized by digital assets. This rate is then used as a benchmark for pricing various financial products and derivatives in the crypto market. It helps provide transparency and efficiency in the lending and borrowing activities within the industry.
  387

  194
• Terkelsen KelleherMar 07, 2025 · 8 months ago
  SOFR calculation in the cryptocurrency industry involves analyzing the interest rates on overnight loans secured by cryptocurrencies. This data is collected from various lending platforms and exchanges, and then a weighted average is calculated to determine the SOFR rate. This rate is important for assessing the overall cost of borrowing and lending in the crypto market, and it helps investors make informed decisions regarding their investments.
  449

  150
• Chance SnifferNov 23, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, utilizes the SOFR calculation to determine the interest rates on its lending platform. The platform collects data from multiple sources, including lending protocols and decentralized exchanges, to calculate the average interest rate on overnight loans collateralized by cryptocurrencies. This ensures that borrowers and lenders on BYDFi's platform have access to fair and competitive rates based on market conditions.
  459

  115