Depositing Assets

The MachFi Protocol operates as a suite of interest rate markets on the blockchain, providing users and applications with a seamless way to earn variable interest on their digital assets. When users supply assets to MachFi, they begin earning interest immediately, with interest accruing in real time. Users can withdraw their principal and accrued interest at any time, offering flexibility and control.

Behind the scenes, users contribute their assets to a shared liquidity pool (or “market”), which other users can borrow from. In return, lenders share in the interest payments made by borrowers, creating a dynamic and mutually beneficial ecosystem.

Upon supplying assets, users receive cTokens from MachFi in exchange. These cTokens, which conform to ERC20 standards, can be redeemed for the underlying assets at any time. As interest accrues, the exchange rate of cTokens to the underlying assets continuously increases, reflecting the growth of the assets supplied. This mechanism ensures that users' earnings are directly tied to the performance of the market, making MachFi a transparent and efficient platform for decentralized finance.