The investor deposits fiat or stablecoins, and the security in BTC is many times higher than the value of the loan.
We check how the lender’s website works on this platform.
Let’s start with the numbers, because they do the work here.
Firefish promises investors to 15% APY on loans secured by Bitcoin, with a date from 3 to 24 months.
Moreover, the platform does not charge any commissions from the lender. Zero.
You deposit EUR, PLN, CHF, CZK or stablecoins (USDC, USDT), you choose a loan offer on the marketplace and wait for the return of capital with interest.
You don’t have to have a single satoshi, you don’t have to deal with crypto wallets or seed phrases.
Sounds almost too good? Well, let’s check where this security comes from.
Overcollateralization of 200% protects the investor’s capital better than most investments
The essence of the model Firefish this is supercollateralization.
The borrower locks up Bitcoin worth twice the loan amount, so the LTV ratio is approximately 50%.
If anyone wants to borrow 10,000 EURmust freeze BTC worth 20,000 EUR in the on-chain system.
The security is in the multisig contract 3-of-3and the platform monitors its value non-stop through the so-called Collateral Health Index (CHI).
When the price of Bitcoin drops, the borrower must top up the collateral.
If he does not do this and does not repay the loan, his BTC goes to liquidation, and you, as an investor, recover the capital along with interest.
By the way, this is a big contrast with failed platforms like this Celsius Whether BlockFithat treated customer deposits as their own.
Three investment paths provide flexibility from retail to institutions
If you like control, the marketplace allows you to manually select specific loans, rates and terms.
For those who prefer the “set it and forget it” approach, it is Auto Investan automatic system that matches offers, but with a low entry threshold EUR 150,000 or equivalent in USDC.
And the third option: AlternativeFund addressed to qualified investors, i.e. the institutional route.
One thing to keep on your radar: the entire model is P2P.
Loans are bilateral, between you and the borrower.
Firefish it does not stand on the other side of the transaction as a central lender, and the non-custodial nature of the platform means there is no re-use of your collateral.
The protocol has also been audited Ackee Blockchainand the code is publicly available.
The article does not constitute investment advice.
