Supplying

Users can become lenders by supplying their preferred asset that is accepted by the protocol. Deposits can be withdrawn anytime unless all tokens in the market are fully borrowed.

Lending interest is distributed through the value appreciation of cToken, which are minted to lenders as their deposit receipt.

cToken

cToken balances represent a supplier share in the market. The exchange rate between the cToken and its underlying asset increases over time:

• Supplying assets mints cTokens based on the current exchange rate.

• Redeeming assets burns cTokens in exchange for the equivalent amount of the underlying asset.

Supply Interest Rate

The supply interest rate S(t) can be expressed by the following formula:

Where:

S(t)= Current supply interest rate

B(t)= Current borrow interest rate

U(t) = Current utilization rate

r= Current Reserve Factor (Protocol take rate)