Supply

Lending on Qubit

How does lending work?

Lenders start by providing liquidity, depositing Tokens to Qubit’s Supply Markets.

You lend assets by providing liquidity to Qubit’s Supply Markets, i.e. by supplying tokens to lending pools for specific Tokens. In return for providing liquidity to a specific Supply Market, you receive qTokens that represent a proportional share of that lending pool. A lending pool holds: 1) all of the liquidity provided by suppliers in a specific money market as well as, 2) all of the interest that has accrued over the duration that the liquidity was supplied.

For example, suppose you are interested in lending BNB and earning interest on the liquidity you have supplied. To do so, simply select the BNB Market from the list of Supply Markets and supply the desired amount of BNB. In return for supplying BNB, you will receive newly minted qBNB on a 1-to-1 basis. When you are ready to leave the market, simply redeem qBNB for the BNB you supplied as well as for your share of accrued interest, and the qBNB is immediately burned.

Examples

Alice the Liquidity Provider deposits USDT to the Qubit USDT pool. She recieves qUSDT representing her deposited tokens and her share of the total interest the pool earns through the lending period. For providing liquidity, Alice will begin earning QBT as a reward. Additionally, Alice can stake her QBT and lock them away for a fixed period to receive a qScore that will boost her rewards for liquidity provision, provide voting power to participate in governance, and allow her to collect profits and fees distributed to QBT stakers.

When Alice would like to withdraw her underlying assets, she will redeem and burn her qUSDT to receive her deposited USDT along with any interest her assets have earned.