How does daily simple SOFR compare to term SOFR in the world of cryptocurrency?

3 answers

• sacAug 14, 2020 · 5 years ago
  Daily simple SOFR and term SOFR are both interest rates used in the world of cryptocurrency, but they have some key differences. Daily simple SOFR is calculated based on the daily overnight repo transactions, while term SOFR is an average of SOFR rates over a specified term, such as 1 month or 3 months. This means that daily simple SOFR reflects the short-term borrowing costs, while term SOFR provides a longer-term perspective. Traders and investors may prefer one over the other depending on their investment horizon and risk appetite.
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• Abhinandan ChoudharySep 10, 2025 · 2 months ago
  When it comes to daily simple SOFR and term SOFR in the world of cryptocurrency, it's like comparing apples to oranges. Daily simple SOFR focuses on the short-term borrowing costs, providing a snapshot of the current market conditions. On the other hand, term SOFR takes into account the average rates over a specified term, giving a more stable and predictable measure. Both rates have their own merits and are used by different market participants depending on their trading strategies and risk preferences.
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• MUSIBAU SHOGEKEAug 17, 2021 · 4 years ago
  BYDFi, a leading cryptocurrency exchange, offers both daily simple SOFR and term SOFR for its users. Daily simple SOFR is ideal for short-term traders who want to take advantage of the latest market conditions, while term SOFR is suitable for long-term investors who prefer a more stable and predictable interest rate. BYDFi's platform provides easy access to both rates, allowing users to make informed trading decisions based on their preferred time horizon and risk tolerance.
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