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Lend

Kylix leverages Lending Pools (LPs) to efficiently aggregate liquidity from lenders, creating a flexible and profitable environment for users who wish to lend their assets. When users deposit assets into a lending pool, they receive kTokens in return. These tokens represent their share of the pool and serve as an accumulating record of interest.

How it works​

  • Deposit & kTokens: lenders deposit assets (e.g., stablecoins, cryptocurrencies) into the lending pools. In exchange, they receive kTokens, which signify their proportional ownership of the pool’s liquidity
  • Interest accumulation: as borrowers draw from these pools, they pay interest on their loans. The interest generated is distributed back into the pool, increasing the value of the kTokens
  • Withdrawal & earnings: lenders can redeem their kTokens at any time, receiving their initial deposit plus the accumulated interest

Benefits of Lending on Kylix​

  • Passive income: by holding kTokens, lenders passively earn as interest accrues over time
  • Security: Kylix’s over-collateralization requirement ensures that loans are backed by collateral, lowering the risk for lenders
  • Diversification: with Kylix’s cross-chain compatibility, lenders have access to a wider range of assets and lending opportunities across multiple blockchain networks

Lenders contribute to the stability and liquidity of the Kylix ecosystem, and in return, they earn reliable returns while supporting decentralized finance’s multi-chain evolution.