5 Things You Need To Know About KuCoin Crypto Lending

2022/05/30 09:56:04


In the previous article, we introduced what is KuCoin Crypto Lending and how it works. In order to help users obtain stable income and increase their APR, this article will share 5 things you need to know about the KuCoin Crypto Lending platform.

1. Lending Is A Perfect Match For Holders & New Investors

Compared with other features like Margin trading and Futures trading, KuCoin Lending is more suitable for users who prefer low-risk investment and pursue stable returns. It means that Lending is a perfect match for holders who can keep coins and earn extra profit.

Furthermore, it is user-friendly to new crypto investors, who can lend crypto assets to earn passive income with several simple clicks.

2. USDT Is Presently The Best Coin For Lending

KuCoin Crypto Lending is a peer-to-peer lending platform, the interest rate of lending changes dynamically and determined by the market.

When the crypto market shows an upward trend, more users will buy long, which will contribute to the increasing demand for USDT. At this point, lending out USDT can get more income. On the contrary, when the market enters a downward trend, a large number of users need to borrow crypto such as BTC and ETH to go short, so it is more profitable to lend these crypto than USDT.

In general, KuCoin Margin traders nowadays are more prone to long rather than short, resulting in USDT often having the highest APR for lending.

3. Choose Traditional Lend To Get A Satisfying APR

Before starting lending your coins, you need to know that you always have to make a tradeoff between Fund Utilization Rate and Interest Rate. Fund Utilization Rate refers to how quickly you can lend out your funds. While Interest Rate is relatively straightforward, it's often known as APR.

Currently, KuCoin Lending allows you to choose the preferred method to lend out your funds. With traditional Lend, you can set a daily interest rate that satisfies you most. However, please note that if the rate set is significantly higher than the current market rate, it can be difficult to get your funds lent quickly. So the Optimal Rate can be taken as a reference when you set the daily rate.


4. Choose Auto-Lend To Make The Most Of Your Funds

If you do not have time to keep an eye on the Lending market all the time, Auto-Lend is a hassle-free option. You have to set the reserve amount, terms and minimal daily rate before starting Auto-Lend to enable Auto-Lend.

Reserve Amount is the amount you DON’T want to lend out, which means you shall input 0 if you’re going to lend all your funds.

Terms refer to the period you want to lend your funds, and with Auto-Lend, you can click all three terms.

Minimal Daily Rate is the minimum rate you can accept when lending funds to others. The system will never lend your funds out with a rate lower than that.


When it’s all set, the system will earn passive income for you. If you have any balance in your Main account, the system will place lending orders for you automatically in seconds and match the optimal rate in the market if it’s higher than your minimum rate.

For instance, let’s say you set the Minimal Daily Rate as 0.05%, and the current optimal interest rate is 0.1%. Once another user repays your funds, the system will immediately place an order for you at the optimal rate, which is 0.1%. In this way, your funds can be fully utilized. While if your Minimal Daily Rate has been set at 0.2%, higher than the optimal rate (0.1%), then the system will place the order at your Minimal Daily Rate, which is 0.2%. And as it’s primarily higher than the optimal rate, the open order may not be filled quickly.

In conclusion, Auto-Lend is a good way to make the most of your funds as it can lend your funds out automatically and quickly at best possible rate. But please set the Minimal Daily Rat wisely, as a high minimum rate may negatively affect your lending profit.

5. Lenders Can Always Get Full Repayment

When lending assets, we all set a term from the three options, namely 7 days, 14 days, and 28 days. Sometimes the borrower will repay ahead of time, and if not,the system will also collect the principal as well as interests when the debt expires. In case the borrower does not have enough balance to repay due to extreme market conditions, the insurance fund of KuCoin Margin will cover the gap to ensure lenders can always get the full repayment.

Closing Thoughts

KuCoin Crypto Lending provides users with a peer-to-peer lending market, where they can borrow crypto assets to amplify their profit and lend assets to earn stable passive income. At present, the KuCoin Crypto Lending platform has supported more than 50 tokens. Click here to earn passive income right away.

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