Depositing and Lending
Depositing and Using the Protocol
To engage with the protocol, users need to deposit an asset that the protocol accepts. This allows them to earn interest, which varies based on the borrowing demand for that asset in the market. Deposited assets also serve as collateral, enabling users to borrow different assets. The interest earned from deposits is designed to balance out the interest accrued from borrowing.
As the platform evolves, more token pools will be integrated. Initially, the core team will decide on these additions. However, as the protocol evolves into a Decentralized Autonomous Organization (DAO), new pools will be determined through community votes and proposals, leveraging the OST token.
Tokenized Yield-Bearing Tokens (iOST Tokens)
Upon depositing, users receive iOSTTokens (like iOSTBNB, iOSTUSDC, iOST, etc.), representing their stake. These iOSTTokens are necessary for withdrawing assets from the liquidity market when needed and can be transferred or traded like other cryptocurrencies on Avalanche.
Supplying Assets
To supply assets, users should:
Select 'Markets' on the menu and then 'Supply'.
Choose the asset type from the drop-down menu in the Supply dashboard.
Input the amount they wish to deposit and click 'Deposit'.
After confirming the transaction, the deposit is registered and starts accruing interest. iOSTTokens, representing the supplied asset, will be deposited into the user's wallet.
There are no minimum or maximum deposit limits, and the first deposit of an asset requires an approval transaction.
Withdrawing Assets
For withdrawals, users:
Click 'Withdraw' under the Supply dashboard for the chosen asset.
Choose the amount to withdraw and submit the transaction.
Withdrawals are possible as long as the assets aren't being used for an active loan or their withdrawal wouldn’t trigger loan liquidation.
Opting Out of Assets Being Used as Collateral
Users depositing multiple assets can choose which to use as collateral through the 'Collateral' slider in the Supply dashboard.
Earning
Depositors continually earn interest on their assets, with rates algorithmically adjusting based on market conditions. Each asset has its own supply and demand market with a variable Annual Percentage Yield (APY). qiTokens, received upon supplying assets to the protocol, represent the user's asset balance and accrue value relative to the original asset through the token's interest rate. The type of iOSTToken minted corresponds to the underlying asset supplied .
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