What is lending?

If you hold funds on Poloniex exchange you can loan them to traders and earn interest.

Please note that you will not be able to cancel an active loan and retrieve your funds while the contract is open.

Why should I use Lend bot?

Lendbot provides automated lending 24/7 at optimal rate so your funds will not stay idle.

Poloniex has built-in function to auto-renew loans when they are paid back, but the interest rate remains unchanged. This often results in automatically placing you loan offer with rate below market (your return will be too low) or above current market rates (your offer will not be taken, and you will not receive any interest). To solve this, Lendbot continuously monitors actual interest rates and offers your funds at the best current rate.

Why should I automate my lending?

Briefly speaking, using Lend bot will generate more profit with less effort compared to regular monitoring of loan offers and lending manually. When you lend to margin trader, your funds usually are divided among several traders. You will have loans maturing almost constantly and end up with idle funds if you do not re-lend them. Main goal of Lendbot is to automatically re-lend users funds to maximize your profit.

API access

Lendbot needs constant API access to your account to lend your coins. You can disable withdrawal of funds and trading options by changing settings for given API Key and Secret pair. You can find instructions on this matter in your account. This ensures there is no risk for you.

Interest rates

Interest rates constantly fluctuate. You can see detailed information on historical rates in your account.

Risks

The main risks are associated with storing your funds on the exchange.

Exchange may become insolvent or hacked. However, if you already keep your funds on the exchange, lending will not increase your risks in this aspect.

Hypothetically forced liquidation of trader positions which prevents users from loosing their funds during drastic price movements may work too slowly, and result in the loss of user funds.

Thus, using Lendbot does not expose you to additional risks.