How does Supply work?

Users supply multiple assets at once to earn an interest on each of them. As this is non-custodian, users can withdraw their supplied amount at any point in time.

  • Liquidity for spot trading: Assets can be used to provide liquidity for spot trading activities.

  • Collateral for borrowing: Assets can also be used as collateral to secure loans.

This "double usage" approach ensures that collateral does not sit idle but actively earns yield through base and credit APY:

  • Base APY: A share of the interest generated by borrowers.

  • Credit APY: A share of the fees generated by market makers' short positions.

cTokens

When assets are supplied on Native, users receive cToken receipts, which represent their claim to the lent assets and the accrued interest. These cTokens are EIP-20 compliant and represent balances supplied to the ecosystem.

  • Earn interest: cTokens can be used to reclaim the lender’s original tokens from the lending pool, along with any accrued interest.

  • Use as collateral: cTokens retain their value and functionality, enabling users to use them as collateral for borrowing within the platform.

How cTokens accumulate interest

Interest accumulation occurs through the cToken's exchange rate. Over time, each cToken becomes convertible into an increasing amount of the underlying asset, even though the number of cTokens in your wallet remains constant.

Managing cTokens

  • cTokens are visible on Etherscan and can be viewed in wallets such as Coinbase Wallet and MetaMask.

  • Other wallets may add support for cTokens over time.

Transferring cTokens

By transferring cTokens, you are effectively transferring your balance of the underlying asset within the Native ecosystem. For instance:

  • If you send a cToken to a friend, your balance on the Native interface will decrease, and your friend's balance will increase accordingly.

  • A cToken transfer will fail if it causes the account to enter a state of negative liquidity, meaning the transfer would put the account into a position where it cannot meet its collateral requirements.

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