What’s your opinion on crypto lending ?

[Roseline492]

Personally, I haven’t lent or borrowed cryptocurrency on any exchange platform prior as it never crossed my mind but it piqued my interest when i came across it online today. On maple finance or so, i had to research a little about lending and i realized it’s one of the process through which trading firms and other crypto institutions raise funds.

I have not even heard that there are exchanges that can lend out money to people neither have I heard exchange requesting people to lend them money, well the whole lending narrative from cryptocurrency in an exchange sound very wired to me because if I should starts with the transparency method is another problem because how would they verify somebody is suitable to be given a loan or weather the trust is enough for someone to fulfill their end of bargain and also what is the guarantee that the person will not leave the exchange for another after borrowing?, so with this is not advisable.

[slapper]

Platforms like Maple Finance do help with decentralized finance, but they also take away some of the traditional protections. There’s no FDIC, no lender of last resort. You don't just lending. You're putting your faith in unknown players in an unstable ecosystem

Why does it even exist? Because capital needs mobility. In traditional markets, credit is oxygen. It is still fragile helium in crypto. Light, fast, but explosive

So before you ask, "Should I lend?" you should ask, "Who can I trust?" Why do I think I need to improve every coin I own? Is this a plan, or is it just a psychological need to get something useful out of every empty byte?

Good idea to look into it. It's smarter to think about why you're interested in it in the first place

[rdluffy]

I'd say you should try to understand the principle of lending and how it works in crypto and blockchain generally as it has different terms for different conditions. I have seen it on exchanges and the condition they gave was you need to have a collateral more than what you want to borrow(I don't see the sense in that) and I have also seen that of Syrup's Maple finance, which is a DeFi platform focused on institutional lending, their scope too would be different, so I would just say you should read terms check what works for you and stick to it, it will be helpful to you in the end.

I'll explain it to you because I didn't understand why these lend/borrow existed either in the past

Suppose you have BTC and you don't want to sell it because you believe in its potential and value
But you need USDC to pay for something

Instead of selling BTC, you could lend it and borrow USDC
You need to leave more value than you're borrowing, because what guarantees that you'll pay back the USDC?

Once you've used the USDC, you can buy it back and pay off your debt, then get your BTC back

[Sim_card]

using the exchanges to lend and borrow most probably is the safest than doing it on the forums which I have seen users doing it on BTT.  i haven't tried it either of them but maybe one day.

i sometimes read those threads where users who borrowed coins from shasan just moved on and doesn't have plans to go back in the forum. The user just borrowed and doesn't have plans to repay.

Lending from exchange does not mean that the user cannot pull an exit scam with the funds just like they do to Sashan in BTT. However, it might be very easy for the exchange to overlook the loss than an individual who is on his own and not rich. I don't like to lend or borrow funds from third parties. I prefer lending from people who I know.

[Dr.Bitcoin_Strange]

using the exchanges to lend and borrow most probably is the safest than doing it on the forums which I have seen users doing it on BTT.  i haven't tried it either of them but maybe one day.

i sometimes read those threads where users who borrowed coins from shasan just moved on and doesn't have plans to go back in the forum. The user just borrowed and doesn't have plans to repay.

Everyone is not the same, those that borrow and run away from it, or they remove themselves from coming to forum, in order not to pay back the coin that they borrow, they should just bear it in mind that karma exist and what they do to others, they will surely reap the same while others that have the fear of God, and the fear that their account will be destroy will pay, just to make sure nothing happen to their account. And why most people borrow coin from Shazam, its for personal reasons best known to them, which it helped them in many ways and its a good idea that Shazam brought to the forum, for this has been a helping hand to many people here on forum.

[libert19]

I like it. I don't know about elsewhere but I frequently lend my Hive Power to other hive users on hive blockchain, here I like the fact that tokens remain in my possesion, and I can take back lent amount anytime I want. Hive has best lending system I have come across.

[sampoerna]

Personally, I haven’t lent or borrowed cryptocurrency on any exchange platform prior as it never crossed my mind but it piqued my interest when i came across it online today.

Crypto lending allows us to be lenders or borrowers. and when we are lenders, we will also get passive income from depositing cryptocurrencies on the DeFi exchange. And this method has been applied and we can choose it to earn more income through it.

but so far, I personally have never done it, and I am not interested in doing it. but this does not mean that there are no people doing it out there. because on various top exchanges, this method and program are also quite popular, because it can generate profits and passive income too, it's just that if the capital is large, if the deposit is small, it's the same. the results will definitely be small,

[lepbagong]

using the exchanges to lend and borrow most probably is the safest than doing it on the forums which I have seen users doing it on BTT.  i haven't tried it either of them but maybe one day.

i sometimes read those threads where users who borrowed coins from shasan just moved on and doesn't have plans to go back in the forum. The user just borrowed and doesn't have plans to repay.

Lending from exchange does not mean that the user cannot pull an exit scam with the funds just like they do to Sashan in BTT. However, it might be very easy for the exchange to overlook the loss than an individual who is on his own and not rich. I don't like to lend or borrow funds from third parties. I prefer lending from people who I know.

Of course, there will always be problems when lending where it is possible that the borrower will commit fraud. It is inevitable because that it is very difficult to avoid, because anything can happen in a situation like this. It seems that what you are doing is very good, because of course there will always be problems later, and it is not impossible to experience losses due to loans that do not go well.

[KryptoBell]

Personally, I haven’t lent or borrowed cryptocurrency on any exchange platform prior as it never crossed my mind but it piqued my interest when i came across it online today.

Crypto lending allows us to be lenders or borrowers. and when we are lenders, we will also get passive income from depositing cryptocurrencies on the DeFi exchange. And this method has been applied and we can choose it to earn more income through it.

but so far, I personally have never done it, and I am not interested in doing it. but this does not mean that there are no people doing it out there. because on various top exchanges, this method and program are also quite popular, because it can generate profits and passive income too, it's just that if the capital is large, if the deposit is small, it's the same. the results will definitely be small,

Though, i never done it, i’ve realized from the comments, crypto lending is a widely adopted in DeFi but in my opinion it's completely valid not to engage in it personally. While many may find it profitable, some find it very risky especially with issues of borrowers not paying off their debts. So far I’ve realized it’s not necessarily worth it for everyone. However it's a good option for those looking to make their idle assets work for them or in other cases for those who need other cryptocurrency assets but don’t want to sell off the one they have at hand.

[Roseline492]

Lending from exchange does not mean that the user cannot pull an exit scam with the funds just like they do to Sashan in BTT. However, it might be very easy for the exchange to overlook the loss than an individual who is on his own and not rich. I don't like to lend or borrow funds from third parties. I prefer lending from people who I know.

You are right there are certain amount an exchange can overlook than individual but still is very bad for the business if they should continue to overlook such things because they will learn about there weaknesses,  actually if exchange must give loan I would say for there safety of funds they should only give to those who are already working for them so that it can be deducted from their pay all the time and at that method there is no way somebody will outsmart any exchange after taking loan from them, as for me even if I could give a loan but it will be to the only people I no to there houses.

[Azharul]

Personally, I haven’t lent or borrowed cryptocurrency on any exchange platform prior as it never crossed my mind but it piqued my interest when i came across it online today. On maple finance or so, i had to research a little about lending and i realized it’s one of the process through which trading firms and other crypto institutions raise funds.

I also realized not only exchanges can lend crypto assets, traders as well can also give out loans through exchanges to maximize profits but from your perspective, what’s your take on crypto lending ?

Lending and borrowing have been around on platforms in the crypto market. I'm not against them, in fact, I believe they're contributing to consolidate liquidity and boost the market development.

However, I choose to stay out of these features in the crypto market. I don't lend, and I don't borrow. I'm concerned that I don't have enough experience to manage the risks involved in this sector of the crypto market. I witnessed the collapse of many lending/borrowing projects in 2022 following the LUNA-UST event and don't want to be on the list of victims of a similar event in the future.

Actually, LUNA-UST is also a best example in future market conditions. I am also agree with your prefer comment, because landing and borrowing in any platform will be risky space for us in cryptocurrency market. So i can not support in landing situation in cryptocurrency market. Because i believe that when we want to face in this situation, i think that then it will be risky space for us so we should avoid in this situation.