Documentation

Lending Guide

Learn how to supply assets to Meteoric and earn passive yield on your crypto holdings.

How Lending Works

When you supply assets to Meteoric, you're depositing them into a liquidity pool that borrowers can access. In return, you earn interest paid by borrowers, distributed proportionally based on your share of the pool. Your supplied assets can be withdrawn at any time, subject to available liquidity in the pool.

Key Benefits of Supplying

Earn Passive Yield

Receive continuous interest payments from borrowers

Accumulate Points

Earn loyalty points redeemable for rewards

Flexible Withdrawals

Withdraw anytime (subject to pool liquidity)

Use as Collateral

Borrow against your supplied assets

Step-by-Step: How to Supply Assets

1

Navigate to the Dapp

Go to the main Dapp page and ensure your wallet is connected. You'll see the "Assets to Supply" section displaying all available assets with their current APY rates.

2

Select Asset and Amount

Click "Supply" on the asset you want to deposit. Enter the amount you wish to supply. The interface will show:

  • Your current wallet balance
  • Expected APY (Annual Percentage Yield)
  • Estimated points earned per day
  • New health factor (if you have existing borrows)
3

Approve Token (First Time Only)

If this is your first time supplying this asset, you'll need to approve the Meteoric smart contract to access your tokens. This is a one-time transaction that enables future supplies without additional approvals.

Note: Native S token doesn't require approval.

4

Confirm Transaction

Review the transaction details in your wallet and confirm. Once confirmed, your assets will be deposited into the liquidity pool and you'll immediately start earning yield.

Gas fees on Sonic Chain are typically very low (less than $0.01 per transaction).

5

Track Your Position

Your supplied assets will appear in the "Your Supplies" section. You can monitor your earned interest in real-time, which compounds automatically every block. Visit the Meteoric Board to see detailed analytics of your position and accumulated points.

Understanding APY Rates

APY (Annual Percentage Yield) represents the annualized rate of return you earn on your supplied assets, including compound interest. Meteoric's APY rates are **dynamic** and adjust automatically based on market conditions.

How APY is Calculated

APY = (1 + Interest Rate / Blocks Per Year)^Blocks Per Year - 1

Interest accrues every block (~1 second on Sonic Chain), meaning your earnings compound continuously. The displayed APY assumes you leave your position untouched for one full year.

Factors Affecting APY

Utilization Rate

Higher utilization (more assets borrowed) → Higher APY for suppliers. When demand for borrowing increases, interest rates rise to incentivize more supply.

Market Demand

Assets with high borrowing demand (e.g., stablecoins during bull markets) typically offer higher supply APY.

Reserve Factor

A small percentage of interest is retained by the protocol as reserves for security and development. The remaining interest is distributed to suppliers.

Risks and Best Practices

⚠️ Liquidity Risk

If utilization reaches 100%, you may not be able to withdraw immediately until borrowers repay or new suppliers add liquidity. This is rare but possible during extreme market conditions.

⚠️ Smart Contract Risk

While Meteoric's contracts are designed with security in mind, all smart contracts carry inherent risk. Never supply more than you can afford to lose.

✅ Best Practice: Diversify

Consider supplying multiple assets to spread risk and take advantage of varying APY rates across different markets.

✅ Best Practice: Monitor Rates

APY rates fluctuate. Check the Analytics dashboard regularly to ensure you're maximizing your yield and consider rebalancing if rates change significantly.

Ready to Start Earning?