Supplying On Hatom

as of 17/06/2023

What is Lending?

Lending is the process of supplying tokens to a pool. In exchange for giving liquidity to this pool, users will gain interest in the tokens they have deposited.

This earned interest comes from the users who pay interest to borrow tokens.

Lenders can withdraw their supplied tokens at any time (as long as they aren’t being used as collateral to borrow tokens and not all the tokens are being borrowed). There is no withdrawal fine or time lock.

How do I deposit ?

Go to the supplying section on the «App» and select the asset you want to deposit. Choose the amount you wish to deposit and confirm your transaction. Once the transaction is approved, your deposit will be successfully registered, and you will receive a receipt token called HToken that accrues interest following the APY of its respective money market.

How much will I earn ?

The returns will also be increased with the additional rewards, made possible by the incentive strategies put in place by the Hatom team.

HTokens holders receive earnings that evolve following the market conditions based on the interest rate paid on loans - suppliers share the interests paid by borrowers corresponding to the average borrow rate times the utilization rate. The higher the reserve utilization, the higher the yield for suppliers.


Each asset has a supply and demand market; each has its own APY (Annual Percentage Yield), which evolves with time. You can find more information about each market on the «Markets» page.

Note that: If you want to learn more about HTokens, please visit: https://esdt.io.

Is there a minimum or maximum amount to deposit ?

There is no minimum or maximum amount to deposit, which means you can deposit any amount you want. Keep in mind that even though the MultiversX network has low fees compared to other networks, for really low amounts, the transaction fee of the process might be higher than the expected earnings. It is recommended that you consider this when depositing very low amounts.

How do I withdraw ?

To withdraw, you need to go to supplying section on the «App», select the market of your deposited asset, and click on «Withdraw». Select the amount you want to withdraw and confirm the transaction. You can also use your «HTokens» as liquidity without withdrawing.

There should be enough liquidity (not borrowed) to be able to withdraw. If there isn’t enough liquidity, you would need to wait for more liquidity to be deposited from suppliers or repaid by borrowers.

How can I add or remove my asset from being used as a collateral ?

In the "Hatom Protocol", you can select the exact amount you want to use as collateral from your supplied assets.

To add collaterals, you need to go to the "Collateral" Pop-up in the supplying section, click on the "Add" button, select the amount you want to add as collateral and confirm the transaction in your wallet.

You can also remove an asset from being used as collateral by going to the "Collateral" Pop-up in the supplying section, clicking on the "Remove" button, selecting the amount you want to remove from being used as collateral, and confirming the transaction.

You can completely remove an asset from being used as collateral if your asset is not actively being used to borrow.

Note that: You need to be careful not to put your position in an unhealthy state when removing an asset from being used as collateral, as you may be subject to Liquidations.

Earning Interest

After depositing your tokens, the pool will mint HTokens and credit you. These HTokens prove that you have supplied assets to Hatom protocol. The system will ask for those HTokens back once you try to withdraw your assets from the supply side.

When you withdraw your deposited tokens, you will receive a higher amount than the amount you started with, proportional to the token’s APY.

APYs in Hatom Money Markets are floating and not fixed. Rates get updated and can fluctuate within short periods. Rates received by lenders are determined by the rates that the borrowers pay.

For example, if you deposit 10 EGLD with an average APY of 7%. You will notice that your wallet contains 10 EGLD worth of hEGLD in it. Once you withdraw your EGLD after one year, you'll return the hEGLD and receive 10.7 EGLD (your original 10 EGLD plus the 7% APY).

What are HTokens ?

HTokens can be considered receipt tokens provided to suppliers upon depositing crypto assets to the protocol.

They are at the core of the lending protocol as they are minted or burned whenever a user supplies or withdraws a crypto asset.

Every HToken has a unique exchange rate that increases over time, making them exchangeable to a superior amount of their underlying asset. However, the numbers of hToken in the user’s wallet remain the same.

Each Money Market has its HToken. And any action performed by a user, whether it be supplying, withdrawing, borrowing, repaying, or liquidating a position, is completed through interacting with an HToken smart contract.