It has been a great experience for me while taking part in these great contest, I delved into more studies about Poloniex ad decided to come back and share with you all.
Lending is traditionally known as a process where a person or organization get some amount of money from another person or organization with agreement to pay it back within a particular period of time as agreed and mostly with interest.
Lending on Poloniex is a way of earning passive income on your funds without actively needing to trade. The Poloniex lending features gives you access to select the specific coin you want to lend to others, the stipulated period of time you want to lend your coin for, and also the amount that you wish to charge the borrowers for your services. Poloniex platform automatically connects the borrowers with lenders who are willing to give out their funds as peer-to-peer loans.
HOW TO OFFER LOANS AND EARN INTEREST ON POLONIEX
I would be taking you through the steps on how you can lend and earn money on Poloniex.
- First of all click on the Lending tab located at the top part of the page.
- select the coin you wish to offer in the "My Balances" box on the right.
- transfer your funds to your lending account, that can be done from the "Quick Transfer" link in the offer box, or by visiting the Transfer Balances page. On the side, you will be able to see your Balances, and which account they are in.
- Select the coin you want to lend from Balances, so in this example the user will click DOGE.
- You will be given a form to fill out concerning the loan like:
Daily interest rate you are lending at.
Amount of coins you are willing to lend.
The duration of days your coins would be held in a loan.
- The Auto-renew box is for your coins to automatically be lend out again at the same rate after the loan they accessed has ended.
In the above picture, the said user is loaning out DOGECOIN (998) for 2 days at a daily interest rate of .0028%. A soon as you have placed your offer, it immediately becomes available for margin traders to access. However there is no guarantee that your loan facility will be taken by a trader.
In the above picture you can see all of the Loan Offers (and their respective rates) so that you can decide what rate to offer your loan.
There you see Open Loan Offers, showing that the loan is still available and has not been filled.
Once the loan is taken, it moves to the My Active Loans section and margin traders usually go for lending offers with the lowest rate.
You always earn interest on them which is paid to your lending account when a contract closes. Poloniex takes a fee of 15% from the interest you earn while your active contracts are listed under My Active Loans.
- You can’t cancel an active loan.
- You can disable Auto-renew, so that your coins return to you when the duration of days given reaches.
- A loan can always be closed early by the taker, so ensure you give competitive rates to enable your offers being taken.
- There are always risks involved when exchange trading, margin trading or lending and the Poloniex platform protect both borrowers and lenders.
- The ability of the borrower to repay their loan is not guaranteed. In the case were all goes well, your lending account will be credited with the initial amount lent to the borrower including interest and excluding the fees due to Poloniex on interest you have earned.
- If a borrower does pay off his loan as agreed due to factors like market volatility, liquidity conditions, and order book activity that makes him not have enough collateral to pay back their loan, the margin platform has a liquidation procedure that will liquidate borrower positions so that there is enough coins left to repay outstanding debts owed to you as lender.
My fellow Steemians these is the simple method of lending on the Poloniex platform, I hope it was enlightening and rich enoughfor you to digest. Start using Polonoex and it's great lending features right now.
Subscribe :::Steemalive Website