> For the complete documentation index, see [llms.txt](https://docs.echelon.market/echelon/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.echelon.market/echelon/core/borrow-lend/borrowing-assets.md). # Borrowing Assets #### **Supplying Assets on Echelon** Echelon enables users to earn passive yield by supplying assets to decentralized lending pools. Lenders contribute tokens to the protocol and, in return, receive a proportional claim on the pool’s assets. As borrowers repay interest on their loans, lenders' claims grow, reflecting their share of the accumulated yield. *** #### **How Supplying Works** 1. **Depositing Assets** – Users supply **Asset Tokens** to the lending pool, making them available for borrowers. 2. **Accruing Interest** – As borrowing activity generates interest, the total value of the pool increases. Lenders' claims grow proportionally, ensuring they earn yield over time. 3. **Withdrawing Deposits** – Lenders can redeem their share at any time, receiving their original Asset Tokens plus accrued interest. The withdrawal amount depends on the pool's current market rate and available liquidity. All lending and borrowing balances are tracked within Echelon’s smart contracts, ensuring automated and accurate accounting. *** #### **Interest Rates & Supply APR** * The **Supply APR** represents the annualized return that lenders earn on deposited assets. * Interest accrues automatically and compounds over time, increasing the lender’s redeemable balance. * Supply APR fluctuates based on **asset utilization**, where: * **Higher utilization** (more borrowing) increases yields for lenders. * **Lower utilization** (less borrowing) decreases yields. Lenders do not need to manually claim interest—it is reflected in their growing claim on the lending pool. *** #### **Example Supplying Scenario** A user deposits **10,000 USDC** into the Echelon lending pool, where the **Supply APR** is **5%**. If they keep their deposit for one year without withdrawals: * **Interest Earned** = 10,000 × 5% = **500 USDC** * **Total Redeemable Balance After One Year** = **10,500 USDC** If the user withdraws earlier, they receive a proportional amount based on accrued interest up to that point. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.echelon.market/echelon/core/borrow-lend/borrowing-assets.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.