> For the complete documentation index, see [llms.txt](https://docs.arenas.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.arenas.fi/financing-markets/supply.md).

# 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**.

***

### 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](/intents-and-liquidity.md)).
3. The pool **mints pool shares** to you, representing your claim on the pool's assets plus accrued yield.

```mermaid
sequenceDiagram
    participant You as You (depositor)
    participant Pool as Arenas pool
    participant Market as Financing Market

    You ->> Pool: 1. Approve asset token
    You ->> Pool: 2. Deposit assets (ERC-20)
    Pool -->> You: 3. Mint pool shares
    Pool -->> Market: 4. Offer liquidity as intents
```

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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.

***

### 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](/risks.md).
* **Withdrawals are delayed.** Redeeming is a two-step, time-locked process. See [Withdraw](/financing-markets/withdraw.md).
* **Want more yield?** You can also fund a pool with borrowed SomniaLend liquidity through the [CDM](/credit-delegation.md).