Supply

Users can supply their assets to Mystic and earn interest on them over time, as they contribute to the protocol’s liquidity. These supplied assets can be used as collateral to borrow and will still be earning interest in the meantime.

Here’s how to supply on Mystic:

• Head over to the pool or vault you are interested in supplying to. In core pools, you are exposed to the combined risk of all core pools. In vaults, you are only exposed to the risk of the vault you lend to.

• Click “supply” and enter your preferred amount. You will see the interest rate you will be earning on a yearly basis, the annual percentage rate (APR).

• After supplying, you will receive in your wallet a token that represents your position in the pool and accrues the corresponding interest. These tokens are called myTokens (e.g. myUSD, myETH).

• You can, at any moment, withdraw your assets and the accrued interest from the pool (as long as there is sufficient unborrowed liquidity). Your myTokens are burned when you do, which triggers the corresponding amount plus interest to be sent to your wallet.

An important thing to note is that the interest rate you’re earning over time is not fixed, rather it depends on the utilization rate of the pool (how much of the supplied liquidity has been borrowed). When utilization is low, APR decreases. When utilization is high, APR increases.