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Depositing assets into Fountain Protocol's money markets
Fountain Protocol provides multiple borrowing and lending markets for a variety of cryptocurrency assets. By depositing cryptocurrencies in the platform, users earn a variable interest rate on their deposits determined by the interaction of supply, demand, and smart contract-set interest rate models.
User deposits provide the pools of liquidity made available on the platform to borrowers, while also granting the ability to act as collateral. Users who have provided collateral assets are able to borrow tokens of their choice, but in doing so accrue interest that has to be repaid in order to release their total supplied balances.
To supply a token to the platform, all a user need do is:
- Click on the MARKETS tab on the menu and click on SUPPLY
- Select the type of asset from the drop box menu in the SUPPLY dashboard.
- Enter the amount of the token to be supplied or press Max to deposit the wallet's entire balance of that token
- Press the Supply button to initiate to transaction and deposit the tokens
- Once the transaction is confirmed, the deposit is successfully registered and it starts earning interest.
On supplying an asset to Fountain Protocol, users will receive in return fTokens. These fTokens are the interest-bearing versions of the underlying asset.
Note: The first deposit of an asset will require an approval transaction