> ## Documentation Index
> Fetch the complete documentation index at: https://docs.edel.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Supplying & Earning

> Step-by-step guide to earning yield on your crypto assets through Edel Finance's supply pools

<Frame>
  <img src="https://mintcdn.com/edelfinance/RAmQMxLSnNZx1q3j/images/Supplying%20&%20Earning.jpg?fit=max&auto=format&n=RAmQMxLSnNZx1q3j&q=85&s=281c3ec0db59abc8d67f844fd913d6e9" alt="Supplying and earning guide showing how to earn yield on crypto assets" width="1920" height="1080" data-path="images/Supplying & Earning.jpg" />
</Frame>

### Where Your Yield Comes From

Think of Edel Finance as a marketplace where you're the lender and others are borrowers:

1. **You supply 10,000 TESLAon to the pool**
2. **Someone borrows 7,000 TESLAon and pays 5% interest annually**
3. **That 5% interest (560 TESLAon/year) gets distributed to all suppliers**
4. **Your share depends on what percentage of the pool you supplied**

<Info>
  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.
</Info>

### Real-Time Earning Example

<Tabs>
  <Tab title="Tokenized Tesla">
    **You Supply:** 50 TESLAon (tokenized Tesla shares)

    **Market Conditions:**

    * Supply APY: 8.5%
    * Tesla Price: \$500 per share
    * Portfolio Value: \$25,000

    **Your Earnings:**

    * Per Day: \~0.012 TESLAon
    * Per Month: \~0.354 TESLAon
    * Per Year: \~4.25 TESLAon

    <Tip>
      Earn additional Tesla shares while maintaining full price exposure and dividend rights.
    </Tip>
  </Tab>

  <Tab title="Tech Stock Portfolio">
    **You Supply:** Tokenized tech stocks

    * 100 APPLon at 7.2% APY
    * 50 TESLAon at 8.5% APY
    * 200 MSFTon at 6.8% APY

    **Combined Monthly Earnings:**

    * APPLon: \~0.60 APPLon
    * TESLAon: \~0.354 TESLAon
    * MSFTon: \~1.13 MSFTon

    <Check>
      Stack stock lending yield on top of capital appreciation and dividends.
    </Check>
  </Tab>

  <Tab title="Mixed Crypto & Stocks">
    **You Supply:** Diversified portfolio

    * 5,000 USDC at 4.2% APY
    * 2 ETH at 2.8% APY
    * 25 TESLAon at 8.5% APY
    * 50 APPLon at 7.2% APY

    **Combined Monthly Earnings:**

    * USDC: \~17.50 USDC
    * ETH: \~0.0046 ETH
    * TESLAon: \~0.177 TESLAon
    * APPLon: \~0.30 APPLon

    <Info>
      Tokenized stocks typically offer higher yields due to institutional borrowing demand for shorting and arbitrage.
    </Info>
  </Tab>
</Tabs>

**What happens when you supply:**

| 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          |

**What happens when you supply:**

<Check>
  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.
</Check>

## Common Questions Answered

<AccordionGroup>
  <Accordion title="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.
  </Accordion>

  <Accordion title="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.
  </Accordion>

  <Accordion title="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.
  </Accordion>

  <Accordion title="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.
  </Accordion>
</AccordionGroup>

## Next Steps

<CardGroup cols={2}>
  <Card title="Borrowing Strategies" icon="coins" href="/the-protocol/borrowing-strategies">
    Learn how to borrow against your supplied assets for advanced strategies
  </Card>

  <Card title="Risk Management" icon="shield" href="/resources/risks">
    Understand protocol risks and safety measures before supplying large amounts
  </Card>
</CardGroup>