Earn

Introducing the lending aspect of Vanna, where users have the opportunity to become passive lenders. By supplying funds to the platform, lenders contribute to the liquidity pool and earn interest in the form of vTokens. These vTokens represent the lender's stake in the pool and accrue interest over time based on the utilization of their funds within the protocol. Importantly, lenders are protected from losses, ensuring a secure and reliable way to generate passive income while contributing to the liquidity and stability of the platform.

Supply

Within Vanna's lending feature, users engage with the "supply" function. Here's how it operates: Users provide assets such as ETH, BTC, USDC, USDT, or DAI to the platform. In return, they receive vTokens corresponding to the asset they supplied. For example, supplying ETH yields vETH tokens, while supplying BTC yields vBTC tokens, and so on. This mechanism enables users to contribute different assets to the liquidity pool and earn interest in the form of vTokens, representing their portion of the pool.

Withdraw

On Vanna's lending side, users can engage in the function known as "withdraw." Here's how it operates: users initiate a withdrawal by burning their vTokens, representing their share of the pool, from the protocol. In return, they receive the originally supplied asset amount plus any accrued interest. For example, if a user withdraws vETH tokens, they will receive the equivalent amount of ETH they originally supplied, along with the interest earned. This mechanism enables users to withdraw their funds from the liquidity pool and receive their assets along with the accumulated interest.

VToken

VToken, the LP token representing ownership in Vanna's lending pool and carrying both interest and supply value. it follows the ERC-4626 standard, making it work smoothly with various Ethereum-based wallets and platforms. vToken operates similarly to Compound's cToken, and it integrates effortlessly with other accounting functionalities within the Vanna ecosystem.

Supply Interest Rate

The supply interest rate on Vanna's lending is a key component of its functionality. This rate represents the return that lenders receive for supplying assets to the liquidity pool. It is determined by various factors within the protocol, including the current utilization rate of the assets in the pool and market conditions.

Users who supply assets to the Vanna platform earn interest on their deposits over time. The supply interest rate is typically calculated and updated dynamically based on the demand for borrowing within the protocol. When the demand for borrowing increases, the supply interest rate may rise to incentivize more users to supply assets to the pool. Conversely, when borrowing demand decreases, the supply interest rate may decrease accordingly