Supply
Last updated
Was this helpful?
Last updated
Was this helpful?
Supplying tokens to the XOXNO Protocol allows users to earn interest on their digital assets while also using these tokens as collateral for borrowing.
How It Works
Liquidity Pools:
Supplied tokens are added to the XOXNO liquidity pool, a smart contract system that facilitates overcollateralized borrowing.
Interest is earned automatically, with the balance growing over time based on the current market supply rate.
Dynamic Interest Rates:
Interest rates for suppliers are determined by the borrow utilisation rate, which measures the percentage of total pool assets currently borrowed.
As more assets are borrowed:
Utilisation rate increases.
Interest rates for suppliers rise, incentivizing more token supply.
Key Features
Real-Time Adjustments:
Interest rates and utilisation rates adjust dynamically as users supply, borrow, repay, or withdraw tokens.
This ensures the system remains responsive to market activity.
Passive Income:
By supplying tokens, users can passively grow their balance without needing active management.
The system operates in a flexible and dynamic liquidity ecosystem.
Benefits for Users
Earn Competitive Yields: Suppliers receive interest based on real-time market conditions.
Flexible Collateral Use: Supplied tokens can double as collateral for borrowing within the protocol.