Supplying & Earning

Supplying Assets

Navigate to the "Supply" section, select the asset you wish to provide, and specify the quantity. After submitting your transaction, once confirmed, your contribution is recorded, and you start accumulating interest. Note: Your initial contribution of a particular asset necessitates an extra approval transaction.

Earnings Potential

Earnings for aToken holders fluctuate with market dynamics, deriving from interest accrued on loans. Your earnings are a portion of the interest paid by borrowers, calculated by the average borrow rate multiplied by the utilization rate of the asset. A higher utilization rate means more earnings for suppliers. The utilication rate U = total_borrow / total_deposit.

Understanding aToken

A aToken represents a deposit receipt for an underlying asset in C14, accruing interest from loans. You can exchange aTokens for the equivalent underlying asset at any time, subject to liquidity availability. For instance, one aWBTC can be exchanged for one WBTC.

Supply Limits

While there's no minimum supply threshold, but It's worth noting that for very small amounts, the transaction costs of the process may be higher than the expected revenue. C14 also implements the Supply Cap parameter, regulated by its Governance. When a reserve has a supply cap, it limits the total asset that can be supplied. You can check current supply caps and reserve statuses on the live dashboard.

Borrowing Rates

You can't borrow using both stable and variable rates simultaneously for the same asset. Switching rates will apply to the entire debt of that asset. However, different assets can have different borrowing rates.

Withdrawing Assets

Withdraw by accessing the "Dashboard", clicking “Withdraw”, and submitting the transaction. You can also utilize your “aTokens" for liquidity without actual withdrawal. Ensure sufficient un-borrowed liquidity is available; otherwise, await additional liquidity from other suppliers or borrower repayments.

Opting Out of Collateral Use

After supply, you can still deselect your asset as collateral in the "Supply" section of your dashboard. Simply toggle off the "use as collateral" option for the asset you prefer not to use as collateral. Note: assets can be withdrawn without opting out from collateral use, unless those funds are actively being used to borrow and withdrawing would cause your loans to liquidate.