Deposit

Deposit the asset token into a Financing Market pool and earn yield as borrowers repay.

Depositing is how you fund a Financing Market. You deposit the market's asset token (e.g. USDC) into a pool and receive pool shares that grow in value as borrowers pay interest back into the pool. In the app this action is labelled Supply.

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How to deposit

1. Approve the asset token for the pool.

2. Deposit the amount. Your capital becomes available to borrowers as intents (see Intents & Liquidity).

3. The pool mints pool shares to you, representing your claim on the pool's assets plus accrued yield.

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What you earn

Your pool shares accrue value from:

• Interest borrowers pay on active financings.

• Optional upfront incentives borrowers pay to attract capital.

• Optional reward programs funded by the market or third parties.

There is no fixed APY. Returns track the actual performance of the market's loans.

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Things to know

• Capacity caps. A pool may have a deposit cap; when it is reached, deposits are paused until capacity frees up. A cap of 0 means unlimited.

• Pool phases. Some pools only accept deposits in certain phases (e.g. an accumulation window). Your deposit reverts when the current phase disallows it.

• Credit risk. Your pool share value can fall if borrowers default. Depositing is not risk-free. See Risks.

• Withdrawals are delayed. Redeeming is a two-step, time-locked process. See Withdraw.

• Want more yield? You can also fund a pool with borrowed SomniaLend liquidity through the CDM.