MAID will be removed from Poloniex lending service

To combat another situation like this going forward, Poloniex is taking steps to protect its margin users including removing illiquid markets such as BTS, CLAM, FCT, and MAID, add adding layers of processes and protections to monitor the risk in its margin markets.

Why even mention MAID? Is this a sneaky attempt at promoting MAID? #NoSuchThingAsBadNews

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You could be correct, but another reason: give examples to make clear the same mistake won’t happen again.
The main thing here for me is not that lending service of MAID stops (for now), but that this is (another) blow to the not so good reputation of Poloniex. At least that is the impression I get when reading reactions on Reddit and Twitter.

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Well, MAID isn’t very liquid relative to other coins. It is at least factually correct! :slight_smile:

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why removed? its an interesting news?

To combat another situation like this going forward, Poloniex is taking steps to protect its margin users including removing illiquid markets such as BTS, CLAM, FCT, and MAID

Illiquid markets can move in price sharply, without much bought or sold. People who are are heavily leveraged get wiped out.

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not even just get wiped out individually. There is a liquidation price yes. but when that hits there need to be orders to buy/sell into to liquidate the position. What happened in the CLAMS market is people were getting liquidated but there was not enough buy orders to cover it even if they sold right down to zero (well I am simplifying a bit here, it has to be high enough to cover the lent value of the position actually.) When that happens its not just one person getting wiped out, its the whole margin market, including lenders, that get hit. Lenders have their loans defaulted on. Borrowers are likely to get caught in a chain reaction of someone getting liquidated then driving the price down to where more people get liquidated for a while before someone has enough liquidity for their entry price to stop it.

I agree its best for MAID right now if we dont have margin trading for the reason we don`t want a chain reaction like that to send the price into the abyss. Remember how last week we had like 60 BTC of buy support. That was awesome and pumped the price. Most people with a bag were very happy about that. But if some old HODLers showed up and said oh nice thanks for 60 BTC things could have gotten very dangerous for everyone.

Bottom line is we really do need to get the liquidity higher so that a few whales can`t take loans they would for sure default on if someone countertrades them. At that point 60 BTC would not pump the price as much, true. But at least we would not be risking a market wide bad event at the same time. in polo’s statement they said they were open to reevaluating margin trading if the liquidity in these markets increased.

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