Lending is a different trading mode of WolfBot. The goal of lending is not to “buy low and sell” high as with regular trading. Instead you are placing loans within an exchange to other traders. Traders can use those loans for margin trading – that is to do leveraged trading which multiplies their potential gains (or losses).

The lending market of supported exchanges allows WolfBot to place loans. Traders can only use those loans for margin trading to leverage their collateral. They can not withdraw those funds – so your crypto currencies are safe and you can be assured that the loan will be repaid. The only case in which funds can get lost is a security breach inside an exchange or a major bug in the exchange’s trading engine.

Technically the lending market works very similar to the trading market. WolfBot also uses strategies to place loans. On the x-axis of the trading chart is also the time of the trades. The difference is that now there are 2 y-axis, which means there are 2 parameters to optimize your loans for:

  • the interest rate of the loan in percent
  • the duration of the loan in days

Therefore, depending on your lending strategy, you can optimize for long or short term loans. Ideally, most lenders want to optimize for the highest interest rates for the longest possible duration.