Provide Liquidity
Last updated
Last updated
One way to interact with the MeltLabs protocol is to provide liquidity to earn passive income.
Here's a quick tutorial that shows how you can provide liquidity to the MeltLabs protocol
In the lending page you can press the supply button to provide liquidity.
Put the amount of USDC that you want to supply.
Then press the supply button and confirm the transaction.
You can also withdraw the supplied USDC, to do that press the withdraw button.
Then withdraw and confirm again the transaction.
Sometimes you may see fractions of USDC that have not been withdrawn, this is because sometimes while the transaction is being confirmed they are given to you in the form of a yield, but they are not withdrawn. If you want to withdraw them just click withdraw again.
At the start we will accept only USDC, as the protocol gains users we will add more pools.
By providing liquidity you will be able to earn interest on your deposit, the APY will then depend on how much of the liquidity is being borrowed.
The risks associated with providing liquidity are very few. The only real risk with providing liquidity is that, for a small period of time, you cannot withdraw your provided tokens. This is because the liquidity is lent out to borrowers; if they get liquidated, the protocol needs to sell the liquidated NFTs to gain back the liquidity provided to the protocol.
