Poloniex lending rates

[salihno71]

After the BTC/BTS fork on 1. August, lending rates on Poloniex have significantly decreased. Before the fork rates were moving between 0.03 - 0.3% per day culminating two days before the fork with the values reaching up to 4%. After the fork they barely reach 0.018%. Does anyone have a reasonable explanation why?

Thanks.

[1713580484]

1713580484

[1713580484]

1713580484

[Kimpoiluiseta]

After the BTC/BTS fork on 1. August, lending rates on Poloniex have significantly decreased. Before the fork rates were moving between 0.03 - 0.3% per day culminating two days before the fork with the values reaching up to 4%. After the fork they barely reach 0.018%. Does anyone have a reasonable explanation why?

Thanks.

lending rate about suply and demand not poloniex control
if demand want loan is high, and suply lending is low, lending rate can high

[salihno71]

lending rate about suply and demand not poloniex control
if demand want loan is high, and suply lending is low, lending rate can high

I understand this. What i don't understand is why there is a change of trend after the fork? I know that you can only guess but i would like to hear opinions.

[BarkingHawk]

Before a fork there is very little available for lending because everyone is perhaps holding onto their coins for a variety of reasons, so of course the rates are high.  Once the fork happens the market is flooded again because the event is over and there is a lot availbable when brings the price down.

BTC as an example had crazy high lending rates before the fork because no one wanted to lend any out so they wouldn't miss out on receiving BCH.

[Guzztsar]

Before a fork there is very little available for lending because everyone is perhaps holding onto their coins for a variety of reasons, so of course the rates are high.  Once the fork happens the market is flooded again because the event is over and there is a lot availbable when brings the price down.

BTC as an example had crazy high lending rates before the fork because no one wanted to lend any out so they wouldn't miss out on receiving BCH.

I agree with you, but the amount of loans demand seems abnormally low

[Quickseller]

Poloniex btc lenders were not going to receive BCH so lenders demanded sky high interest rates to compensate for this.

[salihno71]

Before a fork there is very little available for lending because everyone is perhaps holding onto their coins for a variety of reasons, so of course the rates are high.  Once the fork happens the market is flooded again because the event is over and there is a lot availbable when brings the price down.

BTC as an example had crazy high lending rates before the fork because no one wanted to lend any out so they wouldn't miss out on receiving BCH.

Hm, i have seen cumulative loan offers go as high as 10000 BTC before the fork. It seems to be something else.

[salihno71]

Poloniex btc lenders were not going to receive BCH so lenders demanded sky high interest rates to compensate for this.

I have withdrawn all BTC prior to 1.8. since at that time Poloniex did not have the clear statement on how it will handle the fork. Prior to the fork rates were skyrocketing as never before but when they fell they never returned to the previous values. In the meantime Poloniex decided to give the BCH to the people who had BTC at the moment of fork on their accounts: https://poloniex.com/press-releases/2017.08.03-Bitcoin-Cash-Update/

[salihno71]

Before a fork there is very little available for lending because everyone is perhaps holding onto their coins for a variety of reasons, so of course the rates are high.  Once the fork happens the market is flooded again because the event is over and there is a lot availbable when brings the price down.

BTC as an example had crazy high lending rates before the fork because no one wanted to lend any out so they wouldn't miss out on receiving BCH.

I agree with you, but the amount of loans demand seems abnormally low

Exactly, this is the reason. It seems like people are much less interested in margin trading after the fork. Maybe it's simply due to the fact that the focus moved to BCH.

[TryNinja]

-snip-

-snip-

-snip-

You will get banned if you keep making multiple posts in a row in the same thread.

You just made 3 posts in a period of 5 minutes, and being part of a signature campaign just makes it even worst. There is a "Edit" button for a reason. You should use it next time.

[kriticko29]

I wouldn't suggest grabbing a loan in poloniex either. Because this type of interest rate is compounded daily. Once you can't earn enough money each day of trading and wasn't able to pay the needed value for the interest. The money required for you to pay your debt will increase as big as you can imagine.

[salihno71]

You will get banned if you keep making multiple posts in a row in the same thread.

You just made 3 posts in a period of 5 minutes, and being part of a signature campaign just makes it even worst. There is a "Edit" button for a reason. You should use it next time.

Thank you for the warning. I was not aware that there is any additional limitation for posting beside this:

I've adjusted the limits to make spamming more difficult.

Activity	Min. seconds between post actions	Max PM recipients	PMs per hour
0	360	3	5
16	74	5	30
30	60	5	60
60	30	5	60
100	12	10	120
200	10	15	120
300	8	20	120

I wouldn't suggest grabbing a loan in poloniex either. Because this type of interest rate is compounded daily. Once you can't earn enough money each day of trading and wasn't able to pay the needed value for the interest. The money required for you to pay your debt will increase as big as you can imagine.

I was actually offering the loan. Margin trading is way too risky and i don't know much about it. Lending is a safer way to earn.