FalconLend's Three Built-in Strategies

Contents

• Common Parameters
  • Setting 1: Main Capital Pool
  • Setting 2: High-Yield Reserve Pool
  • Setting 3: Execution & Order Slicing
• Strategy 1: Short-Term Liquidity
• Strategy 2: High-Yield Lock
• Strategy 3: Custom Strategy

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The three strategies differ in loan terms and in how high a rate they hold out for, so you can choose to fit your cash-flow needs and risk appetite. To first understand where the interest comes from, see How Crypto Lending Works.

Common Parameters

Setting 1: Main Capital Pool (Your Primary Funds)

Purpose: find opportunities in the market that meet your conditions and are more likely to appear

• Min Rate (APR %): the offer threshold for the Main Capital Pool; an offer is placed only when the rate reaches this minimum APR
• Lending Term / Max Term (Days): the term the Main Capital Pool is willing to lend for
  • Example: set to 2 days to take only 2-day offers; set to 120 days to take offers from 2 to 120 days

Setting 2: High-Yield Reserve Pool

Purpose: set aside part of your funds and wait for higher-rate opportunities that appear less often

• Reserve Allocation Ratio (%): the share of your total funds reserved for conditions that suddenly appear in the market. If the calculated amount is below the minimum offer size (Bitfinex requires a minimum offer value of 150 USD; after weighing various conditions, the platform sets it at 152 USD), nothing is reserved and those funds go to the Main Capital Pool
• Target Spike Rate (APR %): the offer threshold for the High-Yield Reserve Pool; an offer is placed only when the rate reaches this APR
• Reserve Lending Term / Max Term (Days): the maximum term for High-Yield Reserve Pool offers (example: set to 2 days to take only 2-day offers; set to 120 days to take offers from 2 to 120 days)

Setting 3: Execution & Order Slicing

Purpose: control the speed and frequency of placing offers

• Max Pending Capital Funding Wallet Value Ratio (%): the cap on the value of offers waiting to fill, as a share of your Funding Wallet value in USD; the High-Yield Reserve Pool is counted by its reserved funds and is not included here
• Order Slicing Count: how many offers your available funds are split into
• Sweep Market Bids (Taker Execution): by default, the system first takes existing offers in the order book that match your price (known as the Taker)
• Maker Rate Ladder Step (%): if no offers on the book match your price, the system places offers proactively in steps based on internal conditions (known as the Maker); this sets how much the rate rises at each step
• Order Renewal Mode: off by default (Smart mode)
  • Off (Smart): compares market rates, your existing offers and internal conditions, and cancels and re-places offers only when the difference exceeds a threshold, such as during market rate shifts; the benefit is that, under the same conditions, earlier offers fill first
  • On: cancels and re-places all offers every time; the benefit is staying as close to the market rate as possible, but under the same conditions you lose out to earlier offers

Strategy 1: Short-Term Liquidity

• Description: uses 2-day short offers as the main funds and reserves part of your funds to wait for high-rate, longer-term opportunities (up to 120 days), balancing capital turnover with high-yield opportunities.
• Pros: short offers lend out and return quickly, so funds can be redeployed often; reserved funds still have a chance to fill when a high-rate offer appears.
• Cons: the short main offers float with the market, so overall yield is lower when the market is weak; high-rate offers for the reserved funds appear rarely and may not fill.
• Best for: users who need flexible funds and don’t want to lock them up for long, and a good fit for beginners.
• How to enable:
  1. Select the asset
  2. Select the Short-Term Liquidity strategy preset
  3. Turn on the Automated Lending switch so it turns green
  4. Click Save USDT Strategy Settings (the button shows your selected asset)

Strategy 2: High-Yield Lock

• Description: the main funds have no fixed term (2 to 120 days) and target only high-rate offers, capturing higher lending rates when they appear.
• Pros: once filled, funds lend at a higher rate; in a strong market, a single offer’s rate can exceed Short-Term Liquidity.
• Cons: you have to wait for offers that meet the high-rate conditions, so funds may sit idle longer; loans can run as long as 120 days and the funds can’t be used before maturity.
• Best for: users whose funds can sit untouched for a long time, who don’t need short-term access, and who can accept waiting for fills.
• How to enable:
  1. Select the asset
  2. Select the High-Yield Lock strategy preset
  3. Turn on the Automated Lending switch so it turns green
  4. Click Save USDT Strategy Settings (the button shows your selected asset)

Strategy 3: Custom Strategy

• Description: all parameters are open for you to set, so you can build your own lending strategy based on your judgment, or copy the Short-Term Liquidity or High-Yield Lock strategy first and fine-tune it.
• Pros: you can adapt to market conditions and personal needs, with the most flexibility.
• Cons: you need to fully understand what each parameter does and how they interact; poor settings can leave funds idle or fill at lower rates than expected.
• Best for: advanced users who fully understand the parameters and want to set their own strategy.
• How to enable:
  1. Select the asset
  2. Select Custom Strategy directly and start configuring; or first select Short-Term Liquidity or High-Yield Lock, click Copy Strategy to Custom Strategy at the bottom to copy the parameters, then adjust them
  3. Turn on the Automated Lending switch so it turns green
  4. Click Save USDT Strategy Settings (the button shows your selected asset)

FAQ

• Funds are in your account and the strategy is on, but nothing is being lent? Check that your funds are in the Funding wallet: Bitfinex Wallets Explained
• Want to understand fills and earnings: Viewing Your Lending Performance