For Passive Investors
How Vanna Works for Passive Investors (Lenders):
1. Supply Liquidity to the Lending Pool:
Lender (also known as a passive investor) supplies assets such as USDT, USDC, DAI, WBTC, or ETH into the Lending Pool.
These supplied assets provide liquidity for traders who will borrow from the pool, and in return, lenders earn interest on the assets supplied.
2. Earn Returns:
Lenders earn interest based on the pool’s utilization rate and borrow interest rates as traders borrow with leverage.
Additionally, lenders benefit from liquidation penalties when traders fail to maintain a healthy margin, further increasing yields.
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