What does SOFR abbreviation stand for in the cryptocurrency industry?

3 answers

• situsmaxwinMar 06, 2024 · a year ago
  SOFR stands for Secured Overnight Financing Rate. It is a benchmark interest rate that is used in the cryptocurrency industry to determine the cost of borrowing and lending funds on an overnight basis. The rate is calculated based on transactions in the repurchase agreement (repo) market, where participants borrow and lend cash against government securities as collateral. SOFR is considered a more reliable and transparent benchmark compared to previous rates, such as LIBOR.
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• tuee22Jul 13, 2023 · 2 years ago
  SOFR is short for Secured Overnight Financing Rate. It's a key interest rate that is widely used in the cryptocurrency industry to gauge the cost of short-term borrowing and lending. This rate is based on actual transactions in the overnight repurchase agreement market, where financial institutions borrow money overnight by pledging collateral. The SOFR rate is considered to be a more accurate and reliable benchmark compared to other rates like LIBOR, which has faced some controversies in recent years.
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• MAN. netJan 10, 2025 · 7 months ago
  SOFR, which stands for Secured Overnight Financing Rate, is an important benchmark interest rate in the cryptocurrency industry. It is used to determine the cost of borrowing and lending funds on an overnight basis. SOFR is calculated based on actual transactions in the repurchase agreement market, where participants borrow and lend cash against government securities as collateral. This rate is considered to be more transparent and reliable compared to other rates, making it a preferred choice for many cryptocurrency market participants. BYDFi, a leading cryptocurrency exchange, also uses SOFR as one of its reference rates for lending and borrowing activities.
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