Where Your Yield Comes From
Think of Edel Finance as a marketplace where you’re the lender and others are borrowers:- You supply 10,000 TESLAon to the pool
- Someone borrows 7,000 TESLAon and pays 5% interest annually
- That 5% interest (560 TESLAon/year) gets distributed to all suppliers
- Your share depends on what percentage of the pool you supplied
The more people borrow from the pool, the higher your returns. When borrowing is low, returns decrease but your funds remain safer and more accessible.
Real-Time Earning Example
- Tokenized Tesla
- Tech Stock Portfolio
- Mixed Crypto & Stocks
You Supply: 50 TESLAon (tokenized Tesla shares)Market Conditions:
- Supply APY: 8.5%
- Tesla Price: $500 per share
- Portfolio Value: $25,000
- Per Day: ~0.012 TESLAon
- Per Month: ~0.354 TESLAon
- Per Year: ~4.25 TESLAon
Earn additional Tesla shares while maintaining full price exposure and dividend rights.
| Action | What You Do | What You Get |
|---|---|---|
| Initial Deposit | Supply 100 TESLAon | Receive 100 aTESLAon |
| After 1 Month (8.5% APY) | Hold aTESLAon | Balance shows 100.708 aTESLAon |
| After 1 Year (8.5% APY) | Hold aTESLAon | Balance shows 108.5 aTESLAon |
| Withdrawal | Burn 108.5 aTESLAon | Receive 108.5 TESLAon |
Your aTokens are always redeemable 1:1 for the underlying asset plus interest earned. The number of aTokens you hold increases automatically - no claiming or harvesting needed.
Common Questions Answered
How often do I receive interest payments?
How often do I receive interest payments?
Interest accrues every second and compounds automatically. You don’t receive “payments” - instead, your aToken balance continuously increases in value. When you withdraw, you get your original deposit plus all accumulated interest.
What's the minimum I can supply?
What's the minimum I can supply?
There’s no protocol minimum, but consider gas fees. On Ethereum, supplying less than $500-1,000 may not be cost-effective due to transaction costs. On Layer 2s like Arbitrum, you can profitably supply smaller amounts.
Can I lose money by supplying?
Can I lose money by supplying?
Your principal is generally safe, but risks include: smart contract bugs (mitigated by audits), asset price changes (for non-stables), and temporary illiquidity if all funds are borrowed. You cannot lose money from the lending itself.
Why do rates change?
Why do rates change?
Rates adjust automatically based on supply and demand. When more people borrow, rates go up. When borrowing decreases or more people supply, rates go down. This ensures the market stays balanced.