Lend your doges @ 5% (Poloniex)

[CryptoGuu]

To all longterm Doge holder, you can get up to 5% per day at the moment for lending your doges on Poloniex 

[jpucela14]

How does it works?

[Nxtblg]

How does it works?

Margin loans. Essentially, you're lending to short sellers.

[BellaBitBit]

How does it works?

Margin loans. Essentially, you're lending to short sellers.

Can you explain a bit more to a newbie and what is the minimum?

[eddie13]

Currently...

Rate   Amount (DOGE)   Duration
0.0394%   216.34920830   2 Days
0.0394%   711.80050713   2 Days
0.0396%   1423.60101426   2 Days
0.0397%   25414.22907863   2 Days
0.0397%   100015.61662747   2 Days
0.0398%   379868.41600520   2-20 Days
0.0399%   63.14079803   2 Days
0.0400%   1131996.45052331   2-4 Days
0.0400%   1997886.96170853   2-60 Days
0.0402%   289.10814541   2 Days
0.0403%   235955.38831008   2 Days
0.0405%   1000.00000000   2 Days
0.0410%   46.83316814   2 Days
0.0415%   74.89002605   2 Days
0.0416%   25.09874572   2 Days
0.0420%   507.79367418   2 Days
0.0423%   72.50927395   2 Days
0.0424%   1000.00000000   2 Days
0.0425%   2.10509582   2 Days
0.0430%   1000.03350673   2 Days
0.0440%   2756.83224244   2 Days
0.0460%   1000.00000000   2 Days
0.0465%   0.01012802   2 Days
0.0479%   50782.89519581   2 Days
0.0496%   49.10117404   2 Days
0.0497%   2041.58342392   2 Days
0.0499%   11000.00000000   2 Days
0.0500%   119907.86860245   2-30 Days
0.0598%   833494.18217367   2 Days
0.0599%   50000.00000000   2 Days
0.0600%   5000.00000000   5 Days
0.0690%   2025.01852571   2 Days
0.0700%   105001.89873418   2-7 Days
0.0750%   11144.00985032   2 Days
0.0789%   37.15842298   2 Days
0.0791%   382721.78716635   2 Days
0.0800%   105038.05748977   2-7 Days
0.0839%   478300.23435660   2 Days
0.0846%   393573.21170282   8 Days
0.0848%   7347.69731572   2-10 Days
0.0849%   11501.08354387   2 Days
0.0850%   1806399.24894611   2 Days
0.0888%   41.61823108   2 Days
0.0900%   1583618.03009215   2 Days
0.3000%   64638.00000000   2 Days
0.7960%   23444.00000000   55 Days
0.8000%   99775.00000000   2 Days
0.8689%   4843.95504176   2 Days
0.8690%   955778.96559814   2 Days
0.8810%   13972.58992624   30 Days
0.8820%   200000.00000000   30 Days
Load More

[Gillette]

To all longterm Doge holder, you can get up to 5% per day at the moment for lending your doges on Poloniex 

5% per day? You are wrong: it`s 0.02% per day.

Check this: https://bitcointalk.org/index.php?topic=1432582.msg14491771#msg14491771

[ruletheworld]

Is the default risk taken by Poloniex or the lender? In other words, if the person who borrowed from me went on to lose everything, does Poloniex pay me back or am I out of luck?

[Nxtblg]

How does it works?

Margin loans. Essentially, you're lending to short sellers.

Can you explain a bit more to a newbie and what is the minimum?

I'm afraid I don't know the minimum, but I can explain the loan market. Poloniex now allows short selling for certain high-volume coins. A short sale, or forward sale, consists of borrowing someone's coins, selling them on the market, buying them back later and paying back the loan. This technique is only profitable if the coin drops, allowing the short seller to buy-back his borrow at a low enough price to pay the interest and leave him with a profit.

Just as the object of a trading purchase is to buy low and sell high, the object of a short sale is to sell high and buy low.

If you loan your DOGEs in that loan market, you're offering a short seller the use of your DOGEs for a time at the agreed-upon rate of interest. They'll be sold and the short seller will pay you back + interest when he buys back the coins he borrowed from you ("covers his short") Interestingly, the lender to a short seller is essentially making a bullish bet. If the shorter loses by "selling high and buying back higher", the lender get the interest plus a capital gain. But on the other hand, a successful shorter pays back coins that are worth less.

[Nxtblg]

Is the default risk taken by Poloniex or the lender? In other words, if the person who borrowed from me went on to lose everything, does Poloniex pay me back or am I out of luck?

As far as I know, the counterparty risk is with the borrower. Poloniex just makes it less unsafe by enforcing liquidation buys is the short seller's margin (value of the borrowed coins over and above the loan value) gets too low.

[jpucela14]

Yeah, It's really low 0.0x%

[ruletheworld]

Is the default risk taken by Poloniex or the lender? In other words, if the person who borrowed from me went on to lose everything, does Poloniex pay me back or am I out of luck?

As far as I know, the counterparty risk is with the borrower. Poloniex just makes it less unsafe by enforcing liquidation buys is the short seller's margin (value of the borrowed coins over and above the loan value) gets too low.

Ah cool thanks. Would be nice to see some default-rate statistics in the past. It seems like you'd be flying blind without knowing that information. How would you determine what a 'safe' lending rate is, if you don't know the default rate?

[Nxtblg]

Is the default risk taken by Poloniex or the lender? In other words, if the person who borrowed from me went on to lose everything, does Poloniex pay me back or am I out of luck?

As far as I know, the counterparty risk is with the borrower. Poloniex just makes it less unsafe by enforcing liquidation buys is the short seller's margin (value of the borrowed coins over and above the loan value) gets too low.

Ah cool thanks. Would be nice to see some default-rate statistics in the past. It seems like you'd be flying blind without knowing that information. How would you determine what a 'safe' lending rate is, if you don't know the default rate?

You use the usual metrics 'round here: your hopes, your dreams and your personal crystal ball.

[kiklo]

Margin trading is for insiders and suckers.
http://www.marketwatch.com/story/why-you-should-never-short-sell-stocks-2015-11-19

But if you have a short position, there’s no limit to how much money you can lose if the shares rise. If the share price increases soon after you place a short position, you could quickly “cover” by buying back the shares and returning them to the investor you borrowed them from. If you’re lucky, you might not lose very much.

But an investor named Joe Campbell was not so lucky when he placed a $37,000 short position on KaloBios Pharmaceuticals Inc. US:KBIO  earlier this month, only to find out a day later that the shares had shot up about 800% after Turing Pharmaceuticals CEO Martin Shkreli gained control of a majority of KaloBios’ shares.

If you have not received insider info (which is illegal by the way),
then you are a sucker and will learn the below term very quickly.

What Is a Forced Liquidation?

A forced liquidation is when all or part of your positions are closed automatically to prevent further loss and ensure you do not default on your loans. Forced liquidations are executed using one or more market orders; as such, order book liquidity at the time of these orders will affect the extent of the losses you incur from the liquidation. Forced liquidations occur when your Current Margin dips below your Maintenance Margin. It is strongly advised that you check the markets and your open positions regularly, mitigating your risk as necessary by reducing the size of your positions or transferring additional collateral into your margin account. Markets can change very quickly, and no guarantee can be made that you will receive a Margin Call warning in time for you to prevent a forced liquidation.

https://bitsharestalk.org/index.php?topic=17141.0

Hey guys,
Just have an interesting case study of my trading experience on Poloniex last week.  I traded on Poloniex's margin trading platform and was margin called on June 15th 17:15 when the prices went from .000029 BTC per BTS to .000014 BTC per BTS back to .000028 BTC per BTS in a ten minute span. (Down 50% in less than 10 minutes!) I didn't realize the liquidity was so low on Poloniex, but it's interesting to know what can happen.  I lost a chunk of money.

I think someone or some bot just ran down the book on all the buy orders and got the price really low to trigger all the margin calls and bought back at low prices, but not sure of the exact mechanics.

 

[eddie13]

Is the default risk taken by Poloniex or the lender? In other words, if the person who borrowed from me went on to lose everything, does Poloniex pay me back or am I out of luck?

He can't lose everything because he would be margin called first and you get your BTC back..