Depositing & Earning

Deposit

Why should I deposit?

To earn interest, you will have to supply assets to the protocol. Molend accepts seven types of tokens. Once you have deposited your assets into Molend, you will immediately begin to earn interest on your deposits. Interest is accrued on the amount supplied and calculated after each Near block (average ~2 seconds).

How can I deposit?

Connect your wallet and browse to the "Deposit" sector and click on the asset you want to deposit. Select the deposit amount for the chosen asset and submit your transaction. Once the transaction is confirmed, your deposit is successfully registered, and you start earning interest right away. It is noted that the first deposit of each asset will require an additional approval transaction.

What assets can I use for deposit?

As for March 2024, there are3 assets for collaterals, including stable coins as USDC, USDT and ETH. More assets will be supported soon, stay tune.

Is there a limit amount for my deposit?

There are no minimum or maximum deposit limits. However, it should be taken into consideration that the transaction cost can be higher than the expected earnings in the low amounts cases.

Where are my deposited funds stored?

Your funds are allocated in a smart contract, whose code is public, open source, formally verified . You can withdraw your funds from the pool on-demand or export a tokenized (amTokens) version of your lender position. amTokens can be moved and traded as any other cryptographic asset on Mode.

Can I opt-out my asset from being used as a collateral?

Yes. You can cancel the deposited assets after depositing them as collateral. To opt-out your assets, you will need to visit your “Dashboard” and simply switch off the "use as collateral" button on the asset you would prefer to opt-out from being used as a collateral.

Additionally, You can withdraw your assets without opting out of using them as collateral, as long as those funds are not actively being used to borrow and the withdrawal would cause a liquidation on your loans.

Earning interest on Molend

How will I earn?

Upon deposit, you will receive corresponding amounts of amTokens. If you supply ETH, you will receive amETH, if you supply Ether, you will receive amETH, and so on. Interest is not immediately distributed but instead accrues on the amTokens, and is redeemable for the underlying asset and interest it represents.

Am-token

AmTokens are ERC-20 tokens, representing your balance in the protocol and accrue interest over time. In Molend, interest earned is not distributed immediately but instead accrues in amTokens.

Holders of amTokens will receive continuous earnings evolving with market conditions to make earnings based on:

• The interest rate payment: depositors share the interests paid by borrowers corresponding to the average borrow rate times the utilization rate and reserve factor. The higher the utilization of a reserve the higher the yield for depositors.

• Flash Loan fees: depositors receive a share of the Flash Loan fees corresponding to 0.035% of the Flash Loan volume.

How much will I earn?

On Molend, each asset has its own market of supply and demand respectively with different Annual Percentage Yield(APY) which evolves with time. You may find the APY for each asset from the "Deposit" sectors on the app.

Withdraw

To withdraw your assets, you need to go to your “Dashboard” and click on “Withdraw”. You may submit the transaction after selecting the amount you wish to withdraw. Meanwhile, you can use your “amTokens" as liquidity without withdrawing.

To successfully withdraw your assets, you have to make sure there is enough liquidity (not borrowed), otherwise you would need to wait for more liquidity from depositors or borrowers repaying.