Supply

Supplying tokens to Tydro allows users to earn interest on their digital assets and utilise supplied tokens as collateral. When tokens are supplied, they are transferred to Tydro’s liquidity pools, a system of smart contracts that facilitates overcollateralised borrowing of tokens. In Tydro, supplied tokens automatically accrue interest based on the current market supply rate. As the balance of supplied tokens increases, interest is accrued dynamically, reflecting the current rate allocated to suppliers.

Interest rates for supplied tokens are determined by protocol parameters such as the borrow utilisation rate, which measures the proportion of assets currently borrowed against the total supplied in the pool. These parameters are adjusted through internal configurations that influence incentives across markets, directing capital either towards lenders or borrowers by modifying the effective yield or borrowing cost. As liquidity is supplied, borrowed, repaid, or withdrawn from the pool, the interest rates are updated accordingly.