Lending & Earning FAQ
uETH holders receive continuous earnings that evolve with market conditions based on the interest rate payment on loans: suppliers share the interests paid by borrowers corresponding to the average borrow rate times the utilization rate. The higher the utilization of the reserve, the higher the yield for suppliers.
The APY (Annual Percentage Yield) evolves with time. You can find the average annual rate over the past 30 days to evaluate the rate evolution, and you can also find more data in the home section of the dApp.
Yes. Unlockd auto-compounds your supplied position.
This means you don't need to claim your yield manually to supply it again and earn a yield on those gains - we do it for you automatically. Your uTokens will grow constantly, and you will have to swap them back for liquidity in 1 transaction when you want to withdraw.
This is why depositing to Unlockd is a very tax-efficient way to earn a yield on your cryptocurrency - you don't trigger capital gains taxes until the moment you withdraw.
You can supply any amount you want; there is no minimum or maximum limit. Still, it's important to consider that for really low amounts, the transaction cost of the process may be higher than the expected earnings. It is recommended that you consider this when supplying very low amounts.
To withdraw, you need to go to the "Dashboard" section and click on “Withdraw”. Select the amount to withdraw and submit the transaction. Also, you can use your “aTokens" as liquidity without withdrawing.
You would need to make sure there is enough liquidity (not borrowed) in order to withdraw, if this is not the case you would need to wait for more liquidity from suppliers or borrowers repaying.