How Does Lending on Kucoin Exchange Work?

[Fivestar4everMVP]

Hi guys and fellow crypto coiners !
Ive been around in this space for a while now but like the popular saying that states that "No man is an island of knowledge", and that we learn every day.

It happened i currently own some Ethereum coins which i bought on kucoin exchange, i dont have plan to withdraw them from the exchange anytime soon and i also dont plan on selling them any time soon either, i plan to hold the coins atleast till this year ending so i was looking for way to earn some extra eth while hodling, since i dont want to withdraw them from the exchange, i decided to see if theres any where i can invest my eth within the exchange, in the process, i discover i can lend my eth for 7 days, 14 days and 28 days , though the interest is not that much, i wanna know if anyone have tried this feature on kucoin exchange before ? how does it work and what was your experience like?, do you recommend this move? are there any risk of loosing my funds involved ?

Any advice/contribution or ideas will be highly appreciated.
Thank you all.

[Meta anggraini]

AFAIK the lending activity usually used to provide liquidity or for provide leverage trading.
The coin that you provide for it cant be lose, but you cant withdraw at contract period.

[wayaneka]

This service product is to provide liquidity to earn income, and usually we can make deposit and withdrawal at any times. In other word this product called liquidity mining, this is safe way to earn reward, but the problem is Kucoin exchange is centralize exchange that mean the assets not belong to you and the exchange has acces to our asset. Not key is mean not your asset.
I think is more safe to earn pasif income from the decentralize exchange, because alot of DEX also offer us to become liquidity provider and earn reward that called yield farming. Also available staking to earn reward with less risk to join it.

[YOSHIE]

Any advice/contribution or ideas will be highly appreciated.
Thank you all.

When I read your topic about 'loans on the Kucoin exchange' I remember that the discussion was discussed here at that time.

OP, the topics below will most likely help you when it comes to loans on the Kucoin exchange.

Topic: Kucoin Insane Interest Rates for USDT (Opportunity for USDT lenders)

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.

And this as:
Additional information for you.

How do l lend Usdt on kuCoin.
How to Make a Withdrawal on KuCoin

I think the above information explains everything how the KuCoin exchange works.

[Fivestar4everMVP]

Any advice/contribution or ideas will be highly appreciated.
Thank you all.

When I read your topic about 'loans on the Kucoin exchange' I remember that the discussion was discussed here at that time.

OP, the topics below will most likely help you when it comes to loans on the Kucoin exchange.

Topic: Kucoin Insane Interest Rates for USDT (Opportunity for USDT lenders)

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.

And this as:
Additional information for you.

How do l lend Usdt on kuCoin.
How to Make a Withdrawal on KuCoin

I think the above information explains everything how the KuCoin exchange works.

Thank you very much mate, i must say that the explanation above is very comprehensive and understandable, i really appreciate you for sharing this information here, from the information you shared, ive learnt that there was once a time when reward for lending was very high and encouraging, but i guess this is because in those times, not too many knew about this to try to take advantage of it, right now, rewards seem very low but all the same, am kind of not lending for the reward, just trying to find a way to force myself to hodl  .
I also want to say thank you to every other person that have commented, i really appreciate you all and your comments, thank you all and happy earning.