Bitfinex Borrow is a peer-to-peer (P2P) lending platform that allows users to borrow funds from other users, providing cryptocurrency assets as collateral. Bitfinex is a top 10 exchange globally, with about $330 million in daily volume. Bitfinex customers can now receive U.S. dollars or dollar-pegged stablecoin Tether (USDT) in return for collateralizing their crypto assets. Bitfinex holds the funds until the 5.4% loan is paid back, with loan terms ranging from a few hours to a full year. The amount that can be borrowed ranges from $100 to $250,000 depending on the customer and the type of collateral they are holding (crypt vs stablecoins). Unlike a traditional bank, there are no credit checks or credit approval process, however Bitfinex will require customers to verify their identity through a KYC procedure. Bitfinex claims that their service is more straightforward than most defi offerings because you don’t need to open a smart contract, it allows for multiple collateral types, and it enables direct USD loans and repayment. Customers with partial KYC verification status must keep their borrowed assets invested on the exchange, while those who have completed full KYC verification can withdraw. Although defi may hold the keys to the future of traditional finance, hacks are an ever-present threat to the industry. For example, today an up-and-coming defi protocol created by Yu Pan, an early member of PayPal, suffered a $7.5 million hack in ETH and DAI after a series of mistaken flash loans. The Binance DeFi Composite Index fell nearly 60% from September to November, losing half its value in October, but Ethereum has recovered about 28% in the last month.