Supply (Lend)

On Root Finance, users can supply their assets to become liquidity providers and earn interest. When you supply assets, you're essentially lending them to a smart contract, which uses the liquidity to facilitate borrowing within the market. These funds are then made available to borrowers, creating a dynamic and active market for both sides.

The protocol aggregates each user’s supply into a common liquidity pool governed by smart contracts, making the assets fungible and readily accessible for lending. In return, liquidity providers receive a Root Receipt, which represents their claim on the supplied assets and any accumulated interest over time. The value of this receipt grows proportionally to the interest earned, which is determined by the supply and demand dynamics within the market.

ASSETS AVAILABLE FOR SUPPLY

• WBTC

• ETH

• XRD

• USDC

• USDT

• HUG

• LSULP

• WOWO

• EARLY

Important Consideration: When you supply liquidity, keep in mind that your assets are actively being used to facilitate loans in the market. This means that, during periods of high demand, it might be temporarily difficult to withdraw your entire balance immediately. However, this is completely normal in a lending system, and the protocol manages this through an interest mechanism that encourages loan repayments and keeps liquidity flowing. In essence, the system self-regulates to ensure that funds become available as loans are repaid.