Supply & Borrow

The Supply & Borrow service allows users to earn rewards by supplying tokens to a liquidity pool or utilize other tokens based on the supplied tokens.

Supply: Liquidity Supply

The Supply service allows users to earn rewards by supplying a single asset.

As other users utilize the supplied liquidity, a portion of the Borrowing fee (Borrow APY) paid by them is distributed to the supplier as a supply reward via smart contracts. The supply reward is given in the same token that was supplied.

Additionally, suppliers can earn KSP rewards on top of the supply reward for participating in the liquidity pool. For example, a user who supplies KLAY can earn KLAY (supply reward) and KSP according to the real-time supply APY.

Borrow: Liquidity Utilization

*This feature is currently being prepared for an update.

The Borrow service allows users to utilize desired assets by using their supplied assets as collateral.

The collateral asset value is calculated based on the maximum collateral ratio for each supplied asset (Supply), and users can borrow assets up to this collateral value.

The collateral value is assessed according to the Max Loan to Value(LTV) for each asset, determining the maximum amount of tokens that can be borrowed. This application of the maximum collateral ratio helps maintain the protocol's stability by preventing situations where asset returns become difficult due to a sudden increase in the value of borrowed assets or a sharp decline in the value of collateral assets.

Borrowers pay a borrowing fee (borrow APY) to the liquidity pool for borrowing the assets, and 80% of the accumulated fees are distributed to the suppliers of the respective single asset via smart contracts.