Depositing & Withdrawing Assets

An introduction to the Lending feature on Lend Finance

Deposits

Lenders will be able to chose which lending pools they deposit funds into. By depositing, they will receive a tToken version of the supplied assets. These tTokens represent their share of the pool and essentially act as a receipt. Once supplied Lenders will start to earn interest on their assets.

As Lenders earn, their earnings accumulate as two different types of rewards by the Pool; Supply APY and Reward APY. Supply APY refers to the interest gained back as the native token - this enables the initial capital to compound. Reward APY is the portion of the interest gained in $LEND. This does not automatically compound and will need to be claimed prior to claiming platform revenue. Lenders can always exchange tTokens for their share of capital if they wish to withdraw liquidity.

Withdrawing

Supplied capital can be withdrawn by the lenders whenever needed. This can be done in a couple of ways:

Redeem tTokens

The redeem functionality will convert the specified amount of tTokens into the underlying asset and return them back to user. The amount of tTokens a user receives is the equivelant to the tTokens redeemed, then multiplied by the current exchange rate. The amount that is being redeemed will be less than the user’s account liquidity and available liquidity in the market.

Redeem Underlying

Redeem underlying functionality will convert a user’s tTokens into the specified quantity of underlying asset to then return to the user. The amount of tTokens redeemed is the equivalent of the number of underlying tokens received then divided by the current exchange rate. The amount that is being redeemed will be less than the user’s account liquidity and available liquidity in the market.

Supplied tokens actively being used as collateral on an account with a borrow cannot be withdrawn if there is not adequate tokens to cover the borrow.