# Deposit Market

### <mark style="background-color:blue;">How do I deposit?</mark>&#x20;

* <mark style="color:yellow;">Approve asset for interaction with Sumer Contracts</mark>

This action is required for users interacting with the asset for the first time. Prudent practice is to edit permission to allow only the quantity of assets you would like to deposit. The drawback is additional gas costs to approve additional limits when the current limit is exhausted&#x20;

* <mark style="color:yellow;">Deposit Asset</mark>

Browse to the "Deposit" section and click on "Deposit" for the asset you want to deposit. Select the amount you'd like to deposit and submit your transaction\*. Once the transaction is confirmed, your deposit is successfully registered and you begin earning interest.

### <mark style="background-color:blue;">**How much will I earn?**</mark>

sdrTokens holders receive continuous earnings that evolve with market conditions based on:&#x20;

* <mark style="color:yellow;">The interest rate paid on borrows</mark>&#x20;

Depositors share the interests paid by borrowers corresponding to the average borrow rate times the utilization rate. The higher the utilization of a reserve the higher the yield for depositors. Remember that the protocol has a reserve factor for the deposit yields&#x20;

Each asset has its own market of supply and demand with its own APY (Annual Percentage Yield) which evolves with time.

### <mark style="background-color:blue;">**Is there a minimum or maximum amount to deposit?**</mark>

* You can deposit any amount you want, there is no minimum limit. Please weigh the cost of transaction in depositing really low amounts&#x20;
* Deposit cap - There will be a maximum limit for the deposit pool of the asset (not for an individual user) based on the on-chain availability of liquidity

### <mark style="background-color:blue;">How do I withdraw?</mark>&#x20;

* To withdraw you need to go to the "Dashboard" section and click on “Withdraw”. Select the amount to withdraw and submit the transaction.&#x20;
* You would need to make sure there is enough liquidity (not borrowed) in order to withdraw, if this is not the case you would need to wait for more liquidity from depositors or borrowers repaying.

### <mark style="background-color:blue;">Can I opt my asset out from being used as collateral?</mark>&#x20;

Yes. After depositing your assets, you are able to unselect the asset so that it will not be used as collateral. The opt-out is available in the "Deposit" section within your dashboard. Simply switch the "use as collateral" button on the asset you would prefer to opt-out from being used as collateral.&#x20;

\* You can withdraw your assets without opting out of using them as collateral, as long as those funds are not actively being used to borrow and the withdrawal would cause a liquidation on your loans.

### <mark style="background-color:blue;">How do I claim my interest?</mark>&#x20;

Your interest is automatically added to your deposit balance. You receive more tokens per sdrToken when you redeem.

### <mark style="background-color:blue;">What are the sdrTokens in my Wallet?</mark>&#x20;

sdrTokens are like LP tokens, they are essentially the receipt you receive when you deposit tokens into Sumer Protocol. The sdrTokens are used to claim back underlying tokens. You will need your sdrTokens to withdraw your original tokens.

### <mark style="background-color:blue;">Will you enable deposit/ collateral for more tokens?</mark>&#x20;

In the initial phase, the protocol will only support blue-chip assets to ensure security of the protocol and user funds. Additional assets will be added by assessing market risk of an asset after thorough due diligence and through governance process.

### <mark style="background-color:blue;">Will you enable deposit/ collateral for supported tokens provided by various bridges on non-native chains?</mark>&#x20;

Non-native tokens provided by bridge solution providers will be supported after assessing market risk of an asset after thorough due diligence and through governance process.

### <mark style="background-color:blue;">Can I collateralize only 50% of my deposited token?</mark>&#x20;

No, collateralization is only on 100% of your deposit balance of a given token.

### <mark style="background-color:blue;">Why can't I disable collateral?</mark>&#x20;

You may have an outstanding borrowing balance. Repay some of your borrowed tokens.


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