Depositing into the Vault

Deposit supported stablecoins to provide liquidity and start earning borrow fees. The public testnet supports USDCx, USDM, and USDA deposits, with a current minimum deposit of 1 stablecoin.

Steps

1. Navigate to the Vaults page
2. Choose a stablecoin and enter the amount to deposit
3. Click Deposit
4. Sign the transaction in your wallet
5. Wait for the transaction to be confirmed on-chain

How It Works

Your deposit is processed on-chain:

1. Your stablecoins are deposited into the Vault
2. LP tokens are minted proportional to your deposit:

   lp_tokens_minted = deposit_amount × total_lp_tokens / total_liquidity

   If the pool is empty (first deposit), you receive LP tokens equal to your deposit amount.
3. The Vault's total liquidity and LP token supply are updated accordingly

LP Token Calculation Example

If the Vault currently has:

• Total liquidity: $1,000
• total_lp_tokens: 900 (LPs earned some fees already)

And you deposit $100:

lp_tokens = 100 × 900 / 1000 = 90 LP tokens

Your 90 LP tokens represent 90/990 = ~9.09% of the pool.

info

LP tokens are Cardano native tokens that represent your share of the Vault.