What are the advantages of using 30-day term SOFR in the cryptocurrency market?

3 answers

• Karl GrossApr 19, 2025 · 4 months ago
  Using the 30-day term SOFR in the cryptocurrency market offers several advantages. Firstly, it provides a more stable and reliable benchmark for interest rates, reducing the volatility associated with other short-term rates. This stability can attract more institutional investors to the cryptocurrency market, leading to increased liquidity and improved market efficiency. Additionally, the use of SOFR can enhance transparency and trust in the market, as it is based on actual transactions rather than expert judgment. Overall, incorporating the 30-day term SOFR can contribute to the maturation and mainstream adoption of cryptocurrencies.
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• Dan-Roger BlomgrenJul 01, 2021 · 4 years ago
  Incorporating the 30-day term SOFR in the cryptocurrency market can benefit traders and investors in various ways. The longer-term nature of SOFR allows for better planning and risk management, as it reflects a more extended period of market conditions. This can help traders make more informed decisions and develop effective trading strategies. Moreover, the use of SOFR can reduce the reliance on other short-term rates that may be more susceptible to manipulation or external factors. By adopting the 30-day term SOFR, the cryptocurrency market can enhance its credibility and attract a wider range of participants.
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• Edgardo A. TorresAug 20, 2024 · a year ago
  BYDFi, a leading cryptocurrency exchange, recognizes the advantages of incorporating the 30-day term SOFR in the market. By utilizing SOFR as a benchmark, traders on BYDFi can benefit from improved stability and transparency. The 30-day term allows for better risk assessment and planning, enabling traders to make more informed decisions. Additionally, the use of SOFR can attract institutional investors to BYDFi, increasing liquidity and trading volume. Overall, BYDFi believes that incorporating the 30-day term SOFR is a positive step towards the development and growth of the cryptocurrency market.
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