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How To Lend Tokens
Follow the steps below to deposit tokens into the ApeSwap Lending Network.

Depositing Tokens

1) Click Lend in the nav bar on apeswap.finance to open the ApeSwap Lending Network.
2) Click Connect to connect your wallet to the lending network.
3) Click the Markets tab.
4) Select one of the available Supply Markets on the left side of the screen by clicking on the token name/logo. In this example, we supply BANANA.
5) On the Supply tab, enter the number of tokens you wish to lend, or select from the percentage buttons below. Note the Supply APY (payable in the deposited currency) and the Distribution APY (payable in BANANA).
6) Click Supply at the bottom of the popup. If this is your first time supplying an asset, you will have to approve the token first.

Earning Interest

The ApeSwap Lending Network shows two interest rates (APYs) for each Supply market: a Supply APY, and a Distribution APY.

Supply APY

After depositing your tokens, the pool will mint oTokens - or "receipt tokens" - and credit you. These oTokens show that you have supplied assets to the ApeSwap Lending Network.
NOTE: When you go to withdraw your tokens from the supply side, the system will ask for those oTokens back - so make sure you hold on to them!
The conversion rate from oTokens to the deposited token absorbs the interest that borrowers pay. This means that when you withdraw your tokens, you will receive more than you started with, proportional to the token's APY.
Distribution APY
In addition to interest paid for supplying an asset, ApeSwap also incentives supply through BANANA rewards for certain assets. This is displayed as the Distribution APY and is always paid in BANANA tokens. The Supply APY and the Distribution APY can be summed up to determine a market's total APY at any given time, but keep in mind that Supply APY is paid in the same asset as the user is lending out, and Distribution APY is paid out in BANANA tokens.
It is important to note that APYs are floating and not fixed. Rates get updated on a per-block basis and can fluctuate significantly within relatively short time spans. Rates that lenders receive are determined by the rates that borrowers pay. In other words, the lending and borrowing rates are dynamic and directly linked to supply and demand of that specific token. If a lot of users want to borrow BNB and there is not much BNB left in the lending network, the interest rate will rise due to more demand for BNB and lower supply.
Each token has its own interest rate model that determines the current interest based on a preset mathematical formula. The formula takes into account the utilization of any given market to determine the interest rate. Utilization is essentially the amount of borrowed tokens divided by the amount of supplied tokens. Generally as utilization goes up, interest goes up.

Example

Say you deposit 10 ETH with an average APY of 5%. First, you will notice that your wallet now has 10 ETH worth of oETH in it - these are your receipt tokens. When you go to withdraw your ETH after 1 year, you will trade back the oETH and receive 10.5 ETH in return (your original 10 ETH plus the 5% APY).
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Depositing Tokens
Earning Interest
Example