How do I start lending on dYdX?
Using an Ethereum Wallet, deposit funds on the Balances page to automatically start lending and earning interest. Your balances are updated in real-time on the Balances page as you earn interest.
What if I'm new to this Blockchain or Ethereum stuff?
Check out this in-depth blog post by one of our developers!
How often is interest paid out?
Every second! Interest is based on the number of seconds between depositing and withdrawing.
Does interest compound? How often?
Yes, it compounds every time that someone makes a transaction involving that asset. So usually several times per hour. You can do out the math yourself, but this very closely approximates continuously compounding interest.
How can I see how much interest I've earned?
Under the Balances tab, your balances will be continuously updated as you earn interest, and your current balance will reflect your deposited amount plus your interest earned. We currently have nothing on the UI to separate your earned interest from your deposit amount, however you can always see your original deposit amount under the History tab and subtract that amount from your current balance to get your interest earned.
I already have MetaMask, can I have an exact step-by-step-guide?
- Click the Balances tab (at the top of the screen).
- Click Deposit which will open up a modal.
- Select the asset that you want to lend.
- (Optional, if not lending ETH.) Click Enable DAI (or Enable USDC). This requires you to send a transaction to the blockchain. This transaction approves the protocol to take tokens from your wallet when you go to deposit in the future. This transaction will not take any tokens fro your wallet.
- Type in the amount of your tokens that you want to lend.
- Click Deposit. This requires you to send a transaction to the blockchain. This transaction will transfer tokens from your wallet to the protocol when it is mined into the blockchain.
- You're all set! Your assets will begin earning compounding interest every second that they are in the blockchain. To withdraw your funds, click Withdraw on the Balances tab. To withdraw all funds, click the MAX button in the input of the withdraw modal, then click Withdraw.
What are the risks for lenders?
Borrowers are liquidated when their positions fall below 115% collateralized. In the case that borrowers are not liquidated in time, their positions may become under 100% collateralized and some of the insurance fund on dYdX may be used to cover losses. This insurance fund comes from 5% of all interest payments from borrowers. This has never happened on dYdX. For more information on security, see this article.