Browse to the "Lend" section and click on "Deposit" for the asset you want to deposit. Notice that each type of assets corresponds to a specific NFT collateral collection. And the loan asset in a pool may have different interest rates from that of loan asset in other pools due to the different risks of NFT collections.
Then select the amount you'd like to deposit and submit your transaction. Once the transaction is confirmed, your deposit is successfully registered and you begin earning interest.
To withdraw you need to click on “Withdraw”. Select the amount to withdraw and submit the transaction. Also, you can use your “vTokens" as liquidity without withdrawing.
You would need to make sure there is enough liquidity (not borrowed) in order to withdraw, if this is not the case you would need to wait for more liquidity from depositors or borrowers repaying.
vTokens holders receive continuous earnings that evolve with market conditions based on:
- The interest rate payment on loans - depositors share the interests paid by borrowers corresponding to the average borrow rate times the utilisation rate. The higher the utilisation of a reserve the higher the yield for depositors.
Each asset has its own market of supply and demand with its own APY (Annual Percentage Yield) which evolves with time.