◻️Supply
Supplying on Yielding Protocol refers to the act of providing cryptocurrency liquidity to the platform's liquidity pool, which is used to facilitate fixed rate loans and lending protocols. By supplying their cryptocurrency to the liquidity pool, users can earn rewards in the form of transaction fees generated by the pool. This provides a source of passive income for users while also helping to facilitate transactions on the platform. The automated market maker protocols used by Yielding Protocol ensure that the price of cryptocurrency in the pool is accurately determined based on supply and demand. Overall, supplying on Yielding Protocol plays a crucial role in providing liquidity to the platform and enabling users to earn rewards while supporting the decentralized finance ecosystem.
How it works?
Here's an explanation of how supplying will work on Yielding Protocol:
Users will be able to supply their cryptocurrency to a liquidity pool on the Yielding Protocol platform. The liquidity pool will be used to provide liquidity for fixed rate loans and lending protocols.
The cryptocurrency provided to the liquidity pool will be used to facilitate trades and transactions on the Yielding Protocol platform, including providing collateral for loans and allowing lenders to earn interest on their cryptocurrency holdings.
In exchange for providing liquidity to the pool, users will receive rewards in the form of fees generated by transactions carried out in the pool. The amount of rewards earned by a liquidity provider.
The Yielding Protocol platform will use automated market maker (AMM) protocols to determine the price of cryptocurrency in the liquidity pool based on the ratio of the supply of the cryptocurrency in the pool to the supply of another cryptocurrency in the pool.
Users will be able to withdraw their provided cryptocurrency from the liquidity pool at any time, subject to the liquidity available in the pool at that time and network fees.
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