Spotlight on Huobi-The super feature that makes Huobi special-C2C Lending.

whitestallion (72)SteemAlive Team Leaderin SteemAlive • 3 years ago

Welcome to my third entry on this #ilovehuobi and in my previous entries I talked a lot about some fantastic features of Huobi exchange like the ease of entry and low transaction speed, in this review, we will be talking about one of the killer features that make Huobi the first choice exchange for expert traders and newbies.

In this review, I will explain the following-

C2C lending protocol
How to get started and how to lend and borrow funds in Huobi C2C lending.

Meanwhile, if you want to read more about Huobi features I suggest you visit part 1 of this series(Huobi series), I will leave a link at the end of this post.

Huobi C2C Lending
Lending is the act of entrusting an asset or value owned to another party under contract to repay the value back with its accumulated interest. So lending is required two parties, that is both the lender and the borrower for a transaction to happen, a lender provides required funds while the borrower returns the borrowed amount with interest. This is exactly what happens on the Huobi C2C lending platform.

Huobi's C2C lending protocol makes it possible for investors and traders with idle token balances on Huobi to lend their tokens out to C2C borrowers for Margin Trading in return for token interest earned. Basically, an investor playing a long term investment or a newbie with enough capital can actually earn interest on his investment by lending it out on Huobi's C2C lending platform, investors can submit an order to lend at a specified daily interest of their choice while maintaining their authority over their assets.

Huobi's C2C lending protocol creates a peer to peer system that directly connects lenders to borrowers(in most cases margin traders) which allows them to carry out transactions and contracts in a trustless manner with Huobi's as a custodian of the asset, this allows margin traders the ability to obtain loans at a potentially cheaper interest rate. Currently, lenders can lend BTC and USDT tokens, more will be added in the future.

Margin traders play a very important role in Huobi lending service, as the term implies margin trading simply means trading with borrowed funds tied to a contract to pay a stipulated amount of interest over the course of the loan. margin traders are often referred to as set borrowers because they borrow assets to participate in the trading activities. C2C lending service provides Margin Traders on Huobi with an option to borrow at a potentially cheaper interest rate as low as a daily interest of 0.01%, without any HT requirement.

Huobi's C2C lending protocol has an elastic limit level for both normal user and VIP users, the chart below highlights Huobi's C2C lending elastic limit--

Normal Users: The loan limit of USDT is 1,000,000 (USDT) and the loan limit of BTC is 100 (BTC).

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VIP users

Interest and Repayment Scheme
Huobi charges a Platform Service Fee of 18% charged against the interest amount, which is deducted upon loan repayment. Interest is computed on an hourly basis. Loan duration of less than 1 hour will be considered as one (1) hour. The borrower retains the right to initiate early repayment of the loan. The actual loan period computed will be based on the actual repayment date.

All tokens borrowed under C2C Margin has a repayment period. Lending contracts can last up to a maximum of 30 days. After 30 days, the system will automatically close your corresponding position, return the borrowed tokens, and pay the corresponding token interest owed, however, an automated renewal will ensure the loan is renewed at the lowest available interest rate in the market while returning the loaned tokens to the previous owner.

How to Lend on C2C Lending
This section will simulate how to lend assets in C2C lending protocol, we are going to see how Becks was able to lend out crypto.

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Log in to your Huobi account.
Click on wealth management, a drop-down will appear, click on C2C lending, the next page below will appear.

After Becks opens the page, she sees a list of assets(BTC, USDT) that she can lend out.
Becks chose to loan out USDT tokens.

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Becks fills out the following after confirming her preferred asset(USDT) as highlighted in the image above with a red marker.

Daily loan interest rates
The amount of USDT to be loaned out.
Contract duration ranging from 10-30 days.

After confirming the following parameters above, becks can now initiate a loan request which is automatically placed in order for borrowers to fill.

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Maker in process

Upon successful submission of Loan Order, users can view the status and records in Maker in process and Collection in progress, and flexibly choose to turn on or off Automatic maker. Only loan orders that are unfilled can be canceled.

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Collection in progress

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At the end of the contract and the borrower repays becks loan, the completed order will be updated under the Completed section as highlighted with a red marker in the image above.

Thank