Supply

Supplying tokens to the XOXNO Protocol allows users to earn interest on their digital assets while also using these tokens as collateral for borrowing.

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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.

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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.

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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.