Supplying Assets
Supplying assets to Udon Finance is how you begin earning passive income and unlock the full potential of your crypto holdings. This guide walks you through the steps to provide liquidity to the protocol, leveraging Chromia's efficient and gas-free network for a seamless experience.
Identify supplyable assets on your dashboard
Your Udon Finance dashboard gives an immediate overview of your financial possibilities.
Locate Assets for Supply:
On your dashboard, find the table displaying assets available for supply. This table includes several key columns:
Assets: The cryptocurrency type (e.g., USDC, ETH).
Balance: Your current available balance of that asset in your connected wallet.
Price: The current market price of the asset.
Total Supply: The total amount of this asset currently supplied by all users in the pool.
APY: The Annual Percentage Yield you are estimated to earn by supplying this asset.
Collateral: Indicates if this asset can be used as collateral for borrowing.
Actions: Contains the "Supply" and "Details" buttons.
Check Your Balance & Button Status:
The "Supply" button for each asset will only be active if you have an available balance of that asset in your connected wallet.
If your balance is zero, the button will be disabled, indicating that you cannot supply that specific asset at this moment.
Accessing the Supply pop-up
Click "Supply":
Click the "Supply" button corresponding to the asset you want to provide (for example, USDC).
Review Supply Details:
A "Supply" pop-up will appear, presenting all the necessary information and input fields:
Amount to Supply: Enter the quantity of assets you wish to supply.
Supply APY: The current estimated Annual Percentage Yield.
Collateral: Confirms whether this asset can be used as collateral.
Health Factor (Projected): Real-time projection of how this supply will impact your overall Health Factor (if you have existing borrow positions).
Supply Amount: Displays your current available balance of the chosen asset.
Executing the supply transaction
Enter Amount & Confirm Information:
Input the desired amount you wish to supply into the designated field (for example, "200 USDC").
Carefully review all displayed information within the pop-up to ensure it aligns with your intentions.
Click "Supply" and Confirm in Your Wallet:
Click the main "Supply" button within the pop-up.
Your connected wallet (e.g., MetaMask) will display a separate pop-up or notification asking for transaction confirmation.
Review transaction details (including network fees — typically gas-free on Chromia for DApp interactions) and click "Confirm".
Verifying your supplied assets on the dashboard
After confirming the transaction, your Udon Finance dashboard will update to reflect your newly supplied assets.
Dashboard Update & "Your Supply" Table:
The DApp will automatically refresh to display the updated data.
A "Your Supply" table will appear (or be updated) showing the asset you supplied, its current value, and earnings.
Managing your collateral status
Udon Finance provides granular control over how your supplied assets function within the protocol, especially regarding their use as collateral.
Understanding the Collateral Toggle:
For each asset you've supplied, there is a toggle labeled "Collateral".
When enabled (on), the asset is being utilized as collateral for any loans you have.
When disabled (off), the asset earns interest but cannot be used to back a loan.
Toggling Collateral On/Off:
You can toggle this switch on or off as needed to manage which supplied assets secure your borrows and optimize collateralization strategy.
Important Note: Disabled Collateral Toggle:
In certain circumstances the toggle may appear disabled (grayed out) and unchangeable.
This typically happens if you have an active loan that is solely collateralized by the asset you are attempting to un-toggle. Disabling it would immediately render your loan undercollateralized and exposed to liquidation risk.
This safeguard helps maintain the stability and health of your loan position, aligning with Udon's commitment to secure and reliable DeFi operations on Chromia.