# Supply & Earn

### How do I supply? <a href="#how-do-i-supply" id="how-do-i-supply"></a>

Navigate to the "Supply" section and click on "Supply" for the asset you want to deposit.&#x20;

Enter the amount you would like to supply and click on "Supply" to submit your transaction. You begin earning interest as soon as your supply transaction successfully lands on-chain.\
\
\&#xNAN;*Note: When you supply ADA to Liqwid, you earn both:*

• **Interest** from borrowers using your ADA\
• **Cardano staking rewards** — passed through directly to you. You can claim them in our reward page: <https://liqwid-rewards.sundaeswap.finance/>

*It’s a dual interest+yield model unique to Liqwid’s ADA market.*

### What are qTokens?

The assets users supply into Liqwid markets are represented as qTokens. Supplier's qTokens function as a “receipt” token indicating that the owner of the qTokens can withdraw a value-equivalent amount of underlying assets from the market, plus any interest accrued since the initial deposit.&#x20;

Liqwid qTokens are similar to the LP tokens users receive when providing liquidity on decentralized exchanges (DEX).

### How much will I earn?

* Your earnings depend on supply-demand conditions in each market — and the type of asset you supply. ADA, for example, earns both staking rewards and borrower interest, while stablecoins earn interest only.
* Higher utilization rates typically result in higher interest rates earned by suppliers.&#x20;
* Each supported asset on Liqwid has its own market with a unique Annual Percentage Yield (APY) that updates regularly according to liquidity supplied and borrowed.

## Is there a minimum or maximum amount to supply?

There is a minimum amount set for each market and displayed in the supply modal for each asset.

Supply caps were introduced as a risk control feature in Liqwid v2. As a result if a market has a supply cap level applied you may supply any amount up that cap which is displayed for each market on the market's details page.

<figure><img src="https://1956931724-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MYzCd96BjSLRMU9mVR_%2Fuploads%2FiMIQ7rjQ2kFsJDead3jS%2FScreen%20Shot%202024-08-06%20at%202.11.57%20PM.png?alt=media&#x26;token=9f287577-58f7-4cd4-9fce-8c7899780851" alt="" width="375"><figcaption><p>This is an illustrative example.</p></figcaption></figure>

## Can I borrow at a fixed rate?

No, the Liqwid protocol only supports borrowing with variable interest rates based on supply and demand in each market.

## Do borrowers earn anything on their collateral?

Yes — especially in the ADA market. When borrowers **supply ADA as collateral**, they continue earning **staking rewards** on that ADA throughout the life of the loan. Liqwid’s smart contracts uniquely enable this **dual utility** — your ADA stays liquid, withdrawable once the loan is repaid, and continues staking while securing your borrow position