Topic: BTC Lending Market (Poloniex) Discussion - page 4. (Read 21341 times)

I don't know; I've only tried Poloniex.

Hi weryo, thanks for point out that link! Saw it. Useful! Thank u!

How is poloniex better than nova exchange? Which one is more reliable in terms of giving stable prices in the long run?

Almost, you're making a little less than 10%, because Poloniex takes a 15% fee.

You can see the fee here: https://poloniex.com/tradeHistory  and then "show" "Loan Earnings"

I just want to confirm my calculations are right.

On average, we earn 0.03% interest each day through lending. So, annually, we are talking about (0.03 x 365) 10% interest gain?

I do. In fact, I have.

Do you guys think Poloniex is safe to deposit more coins to generate interest in the lending section?

You can't be 100% sure, because there's a teeny chance that a black-swan will wipe out the borrower's margin cushion (and more) before Poloniex liquidates the trade on the grounds of insufficient margin. The lending is OTC, so Poloniex doesn't vouch for a loan. All Poloniex does is liquidate a borrower's trade-gone-wrong automatically if the borrower's equity falls below the margin-maintenance threshold.

So thee is counterparty risk, but it's slight. In the case of a margin-buy, you'd have to have a huge crash in the borrower-bought alt before your BTC would be at risk of default.

How can a user who lend 10 BTC be 100% sure he'll get back his loan+interest? Does poloniex vouch for a loan or how does this work?

No, I'm doing it manually with the Factom I have.

It's actually a fun way to enter into the world of margin trading without taking the risks that margin traders undertake. In my case, I manually set the daily interest rate at 0.03% to 0.04% in most cases. I'm already noticing that most of my loans get picked up when the Factom market becomes volatile, even when my offers are well above the low offer. On the other hand, when Factom's stable, loan offers set at 0.005% go begging.

FWIW, here's a quick table of daily interest rates compounded to annual:

0.005% daily......1.84% annually
0.01% daily.......3.71% annually
0.015% daily......5.56% annually
0.02% daily........7.57% annually
0.025% daily......9.55% annually
0.03% daily.......11.56% annually
0.035% daily.....13.62% annually
0.04% daily.......15.71% annually
0.045% daily.....17.84% annually
0.05% daily.......20.02% annually
[and so on...]

Of course, the above yearly rates assume that the alts are continuously borrowed - which is not the case. And that's where the challenge comes in: finding a rate that's high enough to produce a decent return but isn't high enough to leave your alts idle.

The neat part about the Lending market is that you have to pay attention to the market for the alt itself almost as if you were a margin trader or short seller - but you're taking a lot less risk than the foregoing punters. It's a real learning experience.

Anyone tried to use scripts to automate lending and automatically adjust the interest rates? There is one on github but it is not working very well, or poloniex blocked it.

The loan rte is very low these days and you could earn much more in alt trading, if you just watch the market and place orders.

i have mixed feelings about this!;

was just checking on the exchange, the highest demand was 1.78 btc at 0.1% interest for 2 days,
1.5% a month if you manage to pull it off back to back for a whole month.

based on what's in this thread, the risks are virtually nonexistent unless sth happens to poloniex itself.
it's certainly better than just having your btc sit;
but at the same time you have to be hopeful nothing happens to ur precious coins on poloniex!

its free money and a compromise at the same time!!!

and what is with their strange account verification?!
filling in a few boxes which has no meaning since they aren't actually checking them against anything!
what guarantee is there that people are providing actual information?!
i'm confused!

no you don't have to have a certain level. just make sure you transfer to your lending wallet in order to start loaning out

These loans are only used for margin trading.

With margin trading you can (for example) lend a coin and sell it, and later buy it back cheaper (and settle the loan).

Do you need a certain level of account to be able to loan btc here? I can't seem to find it. I do find the tab of loan, but I don't see anything in that tab to make it able to loan ... Any help? :p

It's mid December now and it is still 0 loan demand now. But the Loan Offer column is moving with each refresh. Is there some kind of bots that is snapping up the loans?

The loan demand column is usually empty. Most traders are willing to pay a higher loan rate then the lowest loan offer, so the order get executed immediately.

i see there is 0 loan demand in Poloniex now? 

I guess I'm more curious what the market was like pre eth ....