Token approval is an important step whenever you interact with a smart contract to transfer tokens, such as supplying assets or repaying a position on Tydro. Without this, the protocol cannot access your tokens securely. If an approval is required, the Tydro interface will prompt you to complete it in one of two ways:
- Transaction: This creates an on-chain approval that requires a gas fee and some time for confirmation. You will be asked to approve and pay the gas cost before continuing.
- Signature: For tokens that support EIP-2612 and certain wallet types (like private key wallets), approvals can be done through message signing. This is instant and does not require gas fees.
No central entity, including Tydro or any individual contributor, has the ability to freeze or change your positions on Tydro. Tydro is fully decentralised, which means you always keep full control of your assets, and there is no mechanism in the protocol to block or alter individual funds.
Risk controls in place: While individual positions are untouchable, the protocol includes specific risk management functions designed to safeguard the overall system. These functions are strictly limited to broader protocol actions and do not extend to individual user positions:
- PoolAdmin: In Tydro, the PoolAdmin can only pause all interactions within the entire pool of assets.
- EmergencyAdmin: In Tydro, the EmergencyAdmin role can pause specific reserves for purposes of risk management. However, even this action is limited to the reserve level and does not allow for freezing or altering individual positions.
These roles are designed to protect the integrity of the protocol as a whole and do not have the capability to interfere with or directly manage individual user funds.
Yes, you need a wallet to interact with Tydro. Since each instance of the protocol is deployed on a blockchain network, you must use a wallet that supports the corresponding network. This can be a hardware wallet, browser extension, mobile wallet, or a multi-signature wallet.
When using the Tydro interface, wallets are connected through methods such as browser wallets (Zerion, Rabby MetaMask, OKX, etc.), mobile wallets, WalletConnect, and others. These connections are required to sign messages and approve transactions directly from your wallet.
Tydro is a decentralized non-custodial lending protocol for onchain capital markets where users can participate as suppliers or borrowers. Suppliers provide liquidity to the market and earn interest, while borrowers can access liquidity by providing collateral that exceeds the amount they borrow.
Tydro is a decentralized, non-custodial lending protocol that is fully open and permissionless, so anyone can access it. You can interact with Tydro through its interface or directly with the smart contracts on supported blockchain networks. Third-party services and applications can also integrate with the protocol.
To get started, connect your crypto wallet and supply the asset and amount of your choice. Once supplied, you will earn passive income based on market borrowing demand. Your supplied assets can also be used as collateral, allowing you to borrow other assets.
Using Tydro requires transactions on Ethereum or other blockchain networks where Tydro is deployed, which means you will pay gas fees. Gas fees are non-refundable and depend on the network conditions and the complexity of the transaction.
Transaction costs are usually higher on Ethereum and much lower on other supported networks which can be compared here. Your connected wallet will display the gas fee and ask for confirmation before completing a transaction.
Browse the Supply section and click on "Supply" for the asset you’d like to deposit. Enter the amount you want to supply and confirm the transaction in your wallet. Once the transaction is confirmed on-chain, your supply is added to Tydro and you immediately start earning interest on it.
On Ethereum-based networks, supplying tokens requires a prior approval from your self-custodial wallet. This approval step is done through a transaction or signed message and must be completed before your supply can go through.
Suppliers earn continuously, with returns changing based on market conditions. Earnings come from two main sources:
- Borrow interest: Suppliers receive a share of the interest paid by borrowers. This is calculated from the average borrow rate multiplied by the utilization rate. The higher the utilization of a reserve, the higher the yield for suppliers.
- Flash Loan fees: Suppliers also earn a portion of the Flash Loan fees, which is set at 0.09% of the Flash Loan volume.
You can check the current supply rate for each supported token in the Markets section of the Tydro interface. Historic rates can be viewed by selecting a token to open its reserve details page.
There is no minimum amount required to supply. However, some assets in Tydro markets may have a supply cap that limits the total amount that can be supplied for that asset.
Supplied tokens are held in publicly accessible smart contracts that enable over-collateralised borrowing based on the protocol’s parameters. Tydro smart contracts have been audited and formally verified by third parties.
Withdrawals on Tydro are made directly through the Pool smart contract. You can withdraw using the Tydro interface by going to the "Dashboard" section and selecting "Withdraw". Enter the amount you want to withdraw and confirm the transaction in your wallet.
There must be enough liquidity available in the pool to complete your withdrawal. If liquidity is low because assets are currently borrowed, you may need to wait until more liquidity is available from new suppliers or borrowers repaying.
Tydro also includes a Withdraw & Swap feature that lets you withdraw directly into another token.
Yes. After supplying assets, you can disable collateral usage for any asset directly from your dashboard. In the "Supply" section, simply switch off the "use as collateral" option for the asset you want to exclude.
You can also withdraw assets without turning off collateral usage, as long as those funds are not actively securing a borrow position and the withdrawal does not put your health factor at risk of liquidation.
Before borrowing, you need to supply an approved asset to be used as collateral (see the Supplying & Earning FAQ section for details). Once collateral is in place, you can borrow directly through the Tydro smart contracts or via the Tydro interface.
Go to the "Borrow" section and select the asset you want to borrow. Choose the amount you need, based on your available collateral balance, and confirm the transaction in your wallet.
The maximum amount you can borrow depends on the value of the assets you have supplied, the available liquidity in the protocol, and the borrow cap for that asset. For example, you cannot borrow if there is not enough liquidity or if your health factor does not support the loan.
You can view all supported collateral and their specific borrowing limits in the risk parameters dashboard.
When you sell an asset, you close your position and lose exposure to any potential future gains in its value. Borrowing lets you access liquidity without giving up ownership of your assets.
Users typically borrow for purposes such as covering unexpected expenses, leveraging their existing holdings, or taking advantage of new investment opportunities.
Borrow positions can be repaid directly through Tydro smart contracts or via the Tydro interface. In the dashboard, go to the "Borrowings" section and click on the "Repay" button for the asset you want to repay. Select the amount and confirm the transaction in your wallet.
You always repay in the same asset you borrowed. For example, if you borrowed 1 kBTC, you will repay 1 kBTC plus the interest accrued.
Tydro also supports a repay with collateral feature, which uses flash loans and DEX integrations to allow repayment using supplied assets (aTokens). Availability of this feature may vary depending on the market.
The interest rate you pay when borrowing depends on the supply and demand for that asset, as well as the interest rate model defined in the protocol.
You can check the current borrow rate for each supported token in the "Markets" section of the Tydro interface. Historic rates can be viewed by selecting a token to open its reserve details page.
There is no fixed deadline to repay a borrow position. As long as your collateral remains sufficient, you can keep the position open for an unlimited period.
However, interest continues to accrue over time, which lowers your health factor. If your health factor drops too much, your supplied assets may become at risk of liquidation.
Health factor is a number that shows how safe your borrow position is. It is calculated as:
Total Collateral Value × Weighted Average Liquidation Threshold ÷ Total Borrow Value
The liquidation threshold is a parameter set for each collateral asset. It defines the maximum percentage of its value that can be borrowed against it.
If your health factor drops below 1, your position becomes eligible for liquidation.
Example: If you supply $10,000 worth of ETH with an 80% threshold and borrow $6,000 in USDC, your health factor = 10,000 × 0.8 ÷ 6,000 = 1.33.
The health factor moves up or down depending on the value of your supplied assets. If the health factor goes up, your borrow position becomes safer and less likely to be liquidated. If it goes down, it means the value of your collateral has dropped compared to your borrowings, which increases the risk of liquidation.
A liquidation happens when a borrower’s health factor drops below 1 because their collateral value no longer covers their borrow value. This can occur if the collateral decreases in value and/or the borrowed amount increases relative to the liquidation threshold.
During liquidation, up to 50% of the borrower’s debt is repaid, and that value plus a liquidation fee is taken from the collateral. After liquidation, the repaid portion of the debt is closed.
Liquidations are permissionless on Tydro, meaning if a borrow position falls below the required collateral level, any network participant can initiate the liquidation transaction.
Health factor is the ratio of your collateral value to your borrow value. There is no single number that is always safe, since it depends on the volatility and correlation of the assets you use.
Each collateral and borrow asset relies on an oracle that reports its price against a base currency, usually USD. If your collateral and borrow assets are highly correlated (for example, supplying and borrowing only stablecoins or ETH-correlated assets), a lower health factor may still be considered safe. For assets that are less correlated, a higher health factor is safer.
You can use simulation tools to estimate how price changes and accrued interest will affect your health factor.
The liquidation price is the point where the value of your collateral and borrow positions makes your health factor fall below 1. Since health factor depends on the balances and oracle prices of all your collateral and borrow assets, the liquidation price is not a single fixed number but a range of possible combinations.
You can use simulation tools to see how price changes and accrued interest may affect your health factor and estimate the conditions that could lead to liquidation.
You can lower the risk of liquidation by raising your health factor. This can be done by supplying more collateral or repaying part of your borrow position. Repayments usually improve your health factor more than adding new collateral. It is also important to monitor your health factor regularly and keep it well above 1. For example, maintaining a health factor above 2 gives you a safer margin against liquidation.
Tools that can help you with this:
- You can simulate health factor movements using DeFi Simulator.
- You can auto-liquidate your borrow position using DeFi Saver.
Be mindful of asset price fluctuations, including stablecoins. If a stablecoin trades below its peg (for example, USDC at 0.95 instead of 1.00), your health factor may be reduced, increasing liquidation risk.
