Re: Poloniex's taking money from its customers to cover its loss

they should at least establish some sort of payment plan out of their profits like bitfinex did after they were hacked.

I don't think poloniex plans on using money from their profits to repay lenders. I believe their intention to solely use coins recovered from defaulted borrowers. At least this is my understanding

That is my understanding as well, and that's what's stated on their announcement since the beginning. They've shown no intentions to make amends.

I personally think that they should at least take some responsibility over this ordeal. They were stupid enough to let the CLAM/BTC pair to be traded on margin despite knowing full well that the liquidity of clams were extremely low, as I've stated before. They even acknowledged this themselves. If you acknowledge that, then why aren't you taking responsibility?

There is language in their TOS that I believe relives Poloniex from legal responsibility from covering the losses. This means that only mechanism to force Poloniex from taking responsibility is the market. In other words, you need to be willing to vote with your coin, and let it be known this situation is why you are no longer using their platform -- if enough other people do the same, they may decide to use their own money to repay some of the losses; I don't think this will happen unless lending rates on Poloniex become much higher than on competing platforms. If borrowing rates on Poloniex are higher than on other margin platforms, traders will not want to use Poloniex because they can trade on margin elsewhere with less costs.

I was not personally affected, and I cannot lend on Poloniex, but this situation makes me to want to not use Poloniex in the future.

Quote from: yefi on June 29, 2019, 12:38:36 AM

I see rates are down to 2% apr again. I guess lenders there are just gluttons for punishment? Lips sealed

I checked coinlend.org and I see around 3.1% p.a. compared to 2.1% on bitfinex and 1.1% on quoine. Maybe there are enough people not paying close attention to bid down the interest rates this low.

I think at a minimum, lenders would need an 8% pa premium over competitors to make the risk worth it.