Blog & Tutorials

An Introduction To Lending Strategies On Cryptolend.net

The bot of Crypto Lend is a computer program running 24/7. Its job is to take care of lending money on Bitfinex and Poloniex.

Definitions

Before explaining the strategies, we must define some common expressions and terms used.

How To Lend On Poloniex

First, create an account on Poloniex and deposit some bitcoins to the Lending wallet.

How To Lend On Bitfinex

First, create an account on Bitfinex and transfer some bitcoins or USD to the Funding wallet.

How To Lend On Quoine

First, create an account on Quoine and transfer some money to the wallet.

Which Strategy To Use

The best strategies to use depend on your needs and expectations. Here some example case studies for some investor profiles.

Basic Lending Strategy

The Basic strategy automatically places offers with all your available balance, at the best rate possible to maximise the Use rate. A new calculation will be done every minute.

Automatic Lending Strategy

This strategy is an upgrade of the Basic strategy. It aims to skip temporary drops of rate in the lendbook.

Long Maturity Strategy

This strategy is an upgrade of the Basic strategy. The goal is to prioritize rates over maturity. The bet is that 30-days loans will be closed out long before 30 days, so we can focus on highest available rates whatever the maturity.

Initial Split Strategy

The idea is to retain part of your available funds to spread it over time, so that your loans are split in small chunks and you can benefit from an average rate.

Iceberg Strategy

This strategy will limit the maximum amount of your funds being offered on the market at the same time.

Duration Spread Strategy

On basic mode, the bot makes offers with only 2 types of durations: 2 days duration, or for the Max loans duration level of your choice when the lending rate is over the Threshold long offer.

Dynamic Depth Strategy

The deeper the book depth, the better the lending rate to be offered, but also the higher the risk of the offer not being taken.

Risks

Please consider seriously the risks of lending your money on Bitfinex and Poloniex.

Funding At Bitmex

You can earn interest by shorting the Bitmex XBTUSD swap product. More information on the Bitmex blog.

How To Use Cryptolend For Funding At Bitmex

When entering a position with Cryptolend bot, you accept to short Bitmex XBTUSD derivatives. Your bitcoins will be changed into USD equivalent value, so the loss in BTC value can be substantial.

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