How to Deposit
Provide liquidity to the market
Last updated
Provide liquidity to the market
Last updated
In this Tutorial we will be depositing ETH through the Markets.
We've opened one of the markets from this screen, in this example it's ETH.
In the Reserve Status & Configuration section, you can explore essential metrics and settings for each asset market, giving you the insights needed to maximize your strategy. Here’s what you’ll find:
Total Supplied: The total amount of the selected asset (e.g., ETH) currently supplied by users in the liquidity pool.
Earnings Overview:
APY (Annual Percentage Yield): The interest earned by suppliers. This reflects how much your supplied assets grow over time, based on borrower activity and demand within the market.
When you supply assets, you receive A-tokens, which automatically accrue interest. The balance of A-tokens increases over time, reflecting your share of the market’s interest earnings.
Collateral Metrics:
Loan-to-Value (LTV): The percentage of your deposited asset (e.g., ETH) that can be used as collateral to borrow other assets.
Liquidation Threshold: This is the point at which your collateral becomes eligible for liquidation. For example, if your outstanding loan equals or exceeds 85% of your deposited ETH, your position may be liquidated.
Liquidation Penalty: Indicates the percentage of your collateral that liquidators can claim as a reward for liquidating an at-risk position. This penalty is deducted from your collateral to maintain the protocol's health.
The Borrow Info section provides critical details about borrowing activity within the selected market:
Total Borrowed: The total amount of the asset (e.g., ETH) borrowed by users from the market.
Borrow APY: The annual interest rate you’ll pay on your outstanding loan. This rate adjusts dynamically based on supply and demand within the protocol. As a borrower, you do not receive rewards; instead, the interest you pay contributes to the supply pool, ensuring liquidity for all participants.
In the Your Info section, you get a personalized snapshot of your holdings and options in this specific market:
Wallet Balance: Displays the amount of the selected asset (e.g., ETH) in your connected wallet.
Available to Supply or Borrow: Shows how much of the asset you can deposit into the pool or borrow based on your collateralized positions.
Quick Actions:
Supply Button: Instantly deposit your asset into the liquidity pool and start earning interest via A-tokens. The value of your A-tokens will grow over time, reflecting your share of the market’s interest earnings.
Borrow Button: Easily borrow assets against your collateralized supply. Monitor your borrowing activity through the Borrow Info section to manage your risk effectively.
Click "Supply" to deposit.
This will initiate the supply modal.
Select the desired deposit amount and click continue to submit your transaction. Once the transaction is confirmed, your deposit is successfully registered.
The first deposit of an asset will require an additional one-time approval transaction.
After you've deposited an asset, it will be enabled as collateral by default. A collateralised asset will activate your borrowing power and correlate with the number of loans you can make (depending on the Loan-To-Value [LTV] settings of each market)
You can use the toggle on each asset in the Deposit screen to disable the asset from being used as Collateral. Please note that this will influence your Health Factor and can lead to liquidation if this drops below 1
All deposits are enabled as collateral by default. An opt-out option for each asset is available in the "Your Supplies" section on the Dashboard page. Simply toggle the "Collateral" button on the asset you prefer to withhold from use as collateral and confirm the transaction.
