FTX has always been looking into broadening their options when it comes to ways users can invest in their platform, one of the latest forms of this being Margin lending.
Enabling your balance to be borrowed by someone else on the platform and earning some annualized funding paid hourly in the process. You can disable lending anytime without delay if your balance isn’t being borrowed, but if your balance has been lent it can take up to 6 hours for your funds to be released and available in your account.
You can choose to lend your spot holdings of the different coins supported by the FTX exchange allowing you to benefit even more from market volatility. However, sometimes we want to minimize risk as much as possible, and being able to lend your USD balances (TUSD, USDC, PAX, BUSD, or HUSD)is the best way of doing so.
This option is a virtually free risk way of acquiring an amazing APY(Annual Percentage Yield) of usually around 10-20%, and depending on demand up to even 70% with the option of being able to access your funds within 6 hours, it might be a no-brainer to most of us.
How to Margin Lend
First, we need to enable the option for “Spot Margin” in your account settings.
Then go back to your wallet, and click on “Margin Lending”.
Now you can see all the options to lend your spot holdings, The funding rate column shows the estimated APY for the next hour and it updates that amount every hour.
Now we just choose the token that we want to lend and click on the “Lend” button.
Now just specify the amount, minimum desired hourly rate, and minimum desired yearly rate, and minimum yearly rate, this will make our funds not available to lend if the rates fall under the amount specified.
If you scroll down to the Lending History section you will be able to see your hourly earnings.