I've been getting more and more into the KUCOIN ecosystem. What I mean by this is that I am under standing their platform and services more and more. I haven't gotten into their KCS token and reaped those benefits, but I have found some other extremely useful features.
Today I am going to talk about their crypto lending service. Essentially, it allows you to lend out some of your idle assets to other users for a predetermined interest rate. In this way, it is p2p and we get to control the prices and rates. On the flip side, there is a side that you are able to borrow crypto on, and again for a predetermined price.
At first I wasn't sure how to use the service because all the screens and terms seemed way to high level for me, but after about an hour of digging and YouTube'ing I was able to set up my own crypto loan for someone to take.
For my purposes, I am playing with USDT (Tether) for these loans. I was about to get ~$3700 in USDT from a few good exchanges I recently did (the TLM and FORTH stuff).
The lending interface has an auto lend feature that you can set to lend out your assets automatically when they enter your account, but I will play with that more in the future since I'm still so new to a of this.
The interface also lets you pick your loan amount, the time frame (from 7, 14, or 28 days), and what rate you're looking for. Once you agree to the terms you send out your order to the open market and hope someone takes the bait!
Once I knew what I was doing it made much more sense and was easy to set up the next time around. I imagine on the borrow side it is very similar!
The borrowers have the option to repay the loan whenever they want and so we would only get the interest earned in that shortened period of time. That is what happened to one of my loans that I started last night. I still earned interest, but now I have to manually send another order back out.
Now that I have a solid balance of USDT I am confident that I will be able to grow it in a short amount of time. All the funds I am currently lending are from funds I earned online. So it's going to be no loss in case something - whatever it might be - goes wrong with this platform. A risk I am willing to take for these juicy returns in interest.
I plan to continue the 7-day contracts just so I don't lock my funds up for too long in case there are some borrowers that do want to hold for the whole period of time.
Do you guys use any lending service? Do you prefer staking and liquidity tools more? Let me know in the comments below.
