Bitstamp issues Lending Performance Report for June 2024
Bitstamp issues Lending Performance Report for June 2024
The crypto exchange unveils the report, produced in collaboration with Tesseract. It provides a comprehensive analysis of the current crypto lending landscape and the performance of Bitstamp's lending services.
Bitstamp emphasizes transparency and simplicity in its reporting, ensuring that users have a clear understanding of product performance and associated risks, which helps them make lending decisions.
The June report highlights several key areas:
- Market trends analysis: The report delves into the factors that influenced crypto prices and market movements throughout June.
- Portfolio performance: This section of the report provides a detailed overview of the portfolio's performance, showcasing the stability of Bitstamp's lending operations.
- Collateral levels: Detailed insight into the collateralization of each asset is presented, providing transparency into how assets are secured.
- Borrower leverage: The report includes an analysis of debt-to-equity ratios, giving a snapshot of the financial health of borrowers.
Thus, according to the report, Bitcoin (BTC) covers 64.1% across the loan portfolios, followed by Ethereum (ETH) with 13.7% and XRP with 6,0%.
As the loan portfolio is well diversified across 14 borrowers, the level of collateral held for each asset further mitigates credit risk. In Earn Lending, the stablecoin loans (USDT, USDC and EUROC) are fully (≥ 100%) collateralized.
The Earn Lending product targets counterparties with modest leverage in the range of 200% to 400%. At the end of June, the average debt-to-equity ratio of borrowers was 172%, on a downward trend since May, as market makers have reduced their appetite for leverage due to market conditions.
For those interested in detailed performance metrics and insights into Bitstamp's product strategies, the full report is an essential read and is now available for download.
It's important to note that the availability of Earn Lending varies depending on the user's onboarding entity and jurisdiction. Currently, lending services are not available in the US, UK, and Singapore.
As Bitstamp continues to innovate and expand its financial services, staying informed will be key for investors looking to maximize their returns in the crypto market.
