Bitcoin Forum

Right now it is possible to lend USDT with 180% yearly interest rates. What is going on?
When i look at the lending orderbook it seems like it is possible borrowers can fill lending orders up to 300-400% APY.
It seems like great opportunity.
Note that you can lend with 7, 14 or 28 day options and even though you lend for 7,14 or 28 days borrower can pay anytime and interest gathered hourly. If borrowers pays early he only pays for the time he borrowed for. When someone take a long position system automatically borrows for 28 days. So 28 day orders are most likely to get filled.

Is this for real? Is not it how much interest that already offered by lenders to the borrowers may vary? i have checked it on kucoin site

https://www.kucoin.com/margin/lend?lang=en_US
There are so many people who offered various interest on the lending order books

You put your lending offer and borrowers borrows from the book. Right now for example if you put for 0.8% daily (292% yearly) it will get filled quickly.
Yesterday they borrowed all of the orderbook up to 730% yearly APY which is maximum.

Yeah, it's surprising to see that the annualized rate is too high but the maximum term is only 28 days. I haven't tried the feature but OP, did you able to lend and made interest from your USDT? A test of 7 days is what I'm thinking with just a small amount that I can do for testing it.

Maybe this is the reason why there's a sudden surge for the orderbooks. I've calculated if you've got higher amount of USDT, you can make that much but I'm not sure if I'll do that with a huge amount. It is encouraging but I'm not confident.

I didn't understand second part but yes i did lend big amount of USDT. In last 24 hour i have lended big amounts from 700%+ APY for 28d but borrower can pay anytime so they usually pay before 28day.

But i have learned there is a risk involved. If borrowers margin ratio drop belows 95% and get liqudiated and if his balance does not cover his debt insurance fund come into play and it will pay the rest of the debt however if insurance funds also does not cover the debt lender will take a loss.
In all leding transactions there is 15% fee (10% for insurance fund).

But I see it as a good opportunity at all, because in this area I do not want to be able to earn more USD, instead of betting USD, I will use that money to buy myself my favorite altcoins. That is my own opinion not because I do not want to improve profits just that this is not a reasonable option at this time.

They will send you email before you will be liquidated you need to add more collateral or repaid the loan that time before they will liquidate it . I also tried to loan in other exchange binance  to exactly name it. They have an option up to 90 days before you can pay the loan amount with little interest ,you can pay it early  if you want to only paid small interest they will calculate it base on the day you take the loan request.

Lending is also one of the good source of income if you want to earn interest for your money.

the problem is that the borrowers can pay back anytime not sure if there is a tool that it gets lent out manually answer for the high APY people are expecting ALT season so for ETH example they are bullish that it might move towards 5K relatively quickly that is why they are willing to pay APY I guess for you as a lender it is good it is a safe play if it does not turn out to be to labor intensive

It is just too many amateur traders gambling with very high leverage :D. And they are not aware how much interest they are paying. Most probably they dont know much about how margin trading works. Otherwise they would use other platforms to avoid that much interest.

I have seen these lending options in some of the exchanges but never bothered to look further fearing that lending will put you in a hole if they are not repaying, so i am novice in this, is there any insurance from these exchanges if the lender runs away with the amount or are they lending after holding any security from the lenders. If anyone can confirm about the insurance with the amount then i might take advantage of this.

I remember there were problems with this team. They were suspected of manipulating KuCoin by the volume of trade. Many have complained about the lack of asset insurance.
But when considering the work of KuCoin, no questions arise. The stock exchange takes an open position, its team looks good enough.

Are the rates still this high now?