Introduction
In this phase, users can supply funds into the lending pool in order to earn interest and improve protocol liquidity. Note that in order to borrow, users must also supply any asset from their spot account or lending account to be used as collateral.
Once assets are deposited into the lending pool, users become lenders because the funds they supplied can be borrowed by others. Lenders earn interest returns from borrowers who pay fees for borrowing. Additionally, platform liquidity is boosted as more users choose to lend assets, improving the user experience of the Phemex lending protocol. Check here to view all available assets for lending.
Variables
- Supply APY - This will fluctuate based on market conditions. It’s a Flexible Rate that is updated hourly.
- Real-Time APR - Represents the effective annual rate of return earned on these assets
- Hourly Real-Time Rewards - Refers to interest earnings in Phemex Token (PT) that are calculated and distributed on an hourly basis.
- Protocol Rules:
- Supply APY will fluctuate based on the market conditions. It's Flexible Rate and updated hourly.
- Excluding special cases or unforeseen situations, users could redeem their supplied assets anytime, and withdraw their funds in the real-time.
- All interest income earned from supplying will be auto-sent to the lending account.
Reserve Status & Configuration Info - Supply Information
Supply Interest Rate - Supply interest rates will fluctuate based on market conditions. It is updated hourly and users can check these changes on a chart spanning different timeframes from one day to one year.
Interest Rate Model - The lending pool's utilization rate = Total funds lent / Total pool size
A low utilization rate suggests that there is excess liquidity within the pool. In response, the system may decrease interest rates to incentivize borrowing and more utilization of these funds.
Conversely, when the utilization rate is high, it indicates that a larger portion of the pool's funds is being borrowed. APY may be increased as a reward for supplying assets into the pool.
The Borrow Rate represents the interest rate at which users can borrow assets from the lending pool. The Utilization Rate, which indicates the proportion of the lending pool's funds currently being utilized, is shown on a chart for visual reference.
Steps to Supply on Phemex
1.Log in to your Phemex account and go to Phemex homepage > Web3 Dropdown menu > Phemex Lending
2.You'll be directed to the Lending page where you can find our One Click Lending feature. Alternatively, scroll down to access the Lending Supply Market to view all available assets.
3.Select the cryptocurrency and amount you wish to supply. Be sure to review all variables and agree to the Phemex Crypto Loans Service Agreement by checking the box before clicking "Supply". Once submitted, you'll receive a confirmation order.
4.Check the transaction details in your My Lending Account under Ongoing Supply.
5.On the right side of the Ongoing Supply page, you'll find two options:
- Supply: This option allows you to supply additional funds to your ongoing order.
- Redeem: Upon redemption, you'll receive the proceeds on the same day. Holdings currently accruing rewards will be redeemed first. You can also choose to transfer funds to either your Lending Account or Spot Account.
