Lend

How to Lend

This guide walks you through supplying assets to Zentra to earn yield. Supplying (lending) is the simplest way to earn passive income on your crypto assets.

Overview

When you supply assets to Zentra:

• Your assets enter a liquidity pool

• Borrowers pay interest to use these assets

• You earn a share of that interest + ZNT rewards

The Flow:

1. You deposit USDC into the pool

2. Pool gives you aUSDC (interest-bearing token)

3. Rewards accumulate automatically (interest + ZNT)

Prerequisites

Before you begin, ensure you have:

• ✅ Wallet connected to Citrea network

• ✅ Assets to supply (USDC or wcBTC)

• ✅ Small amount of cBTC for gas fees

Step-by-Step Guide

Step 1: Connect Your Wallet

1. Go to zentra.finance

2. Click "Connect Wallet" (top right)

3. Select your wallet (MetaMask, Rabby, etc.)

4. Approve the connection request

Step 2: Navigate to Supply

1. Click "Markets" or "Dashboard"

2. Find the asset you want to supply (e.g., USDC)

3. Click "Supply"

Step 3: Enter Amount

1. Enter the amount you want to supply

2. Or click "Max" to supply your entire balance

3. Review the transaction details:

Metric	Description
Supply APY	Base interest rate
Reward APY	ZNT emissions
Total APY	Combined earnings

Example:

• Supply APY: 4.5%

• Reward APY: 8.2%

• Total APY: 12.7%

Step 4: Approve Token (First Time Only)

If this is your first time supplying this asset:

1. Click "Approve"

2. Confirm the approval in your wallet

3. Wait for transaction confirmation

💡 This allows Zentra's smart contract to use your tokens. You only need to do this once per asset.

Step 5: Confirm Supply

1. Click "Supply"

2. Review the transaction in your wallet

3. Confirm the transaction

4. Wait for confirmation

Step 6: Verify Your Position

After the transaction confirms:

1. Check your dashboard

2. You should see:

   • Your supplied amount

   • Current APY

   • Accruing rewards

What Happens Next

Automatic Earnings

Your supplied assets automatically earn interest. The aToken balance (e.g., aUSDC) increases over time to reflect your earnings.

Example Growth:

Time	aUSDC Balance	Gain
Day 1	1,000.00	-
Day 30	1,003.75	+0.375%
Day 365	1,045.00	+4.5%

ZNT Rewards

In addition to interest, you earn ZNT tokens:

• Rewards accumulate continuously

• Claim anytime from the dashboard

• No lock-up on claimed rewards

Withdrawing Your Supply

Step-by-Step Withdrawal

1. Go to your dashboard

2. Find your supplied asset

3. Click "Withdraw"

4. Enter amount (or "Max")

5. Confirm transaction

Withdrawal Limits

You can withdraw any amount up to:

• Your total supply, OR

• Available liquidity in the pool

⚠️ If utilization is very high (95%+), you may need to wait for borrowers to repay.

Using Supply as Collateral

Your supplied assets can also be used as collateral for borrowing.

Enable Collateral

1. Find your supplied asset

2. Toggle "Use as Collateral" to ON

3. Confirm the transaction

Disable Collateral

1. Find your supplied asset

2. Toggle "Use as Collateral" to OFF

3. Confirm the transaction

⚠️ You can only disable collateral if you have no active borrows, or if your Health Factor remains above 1.0 after disabling.

Optimizing Your Yield

Tips for Maximum Returns

Strategy	Benefit
Compound rewards	Claim ZNT, stake for additional yield
Monitor APY	Supply assets with highest total APY
Stay active	Higher activity = more emissions

APY Breakdown

Your total earnings come from:

Total APY = Base Supply APY + ZNT Reward APY

Example:

• Base APY: 4.5% (paid in USDC)

• Reward APY: 8.2% (paid in ZNT)

• Total: 12.7%

Understanding zTokens

When you supply, you receive zTokens (e.g., zUSDC).

Property	Description
Interest-bearing	Balance grows automatically
1:1 redeemable	Always worth underlying asset
Transferable	Can send to other addresses
Composable	Use in other DeFi protocols

Example

Supply 1,000 USDC → Receive 1,000 zUSDC

After 1 year (4.5% APY):

• zUSDC balance: 1,045 zUSDC

• Redeem: 1,045 USDC

FAQ

Q: Is there a minimum supply amount?

No minimum. Supply any amount you want.

Q: Can I lose my supplied assets?

Supplied assets are safe in normal conditions. Risks include smart contract bugs and extreme liquidity crunches. See Risk Management for details.

Q: When do I earn interest?

Interest accrues every block. Your Token balance increases continuously.

Q: How do I claim ZNT rewards?

Go to your dashboard, find the "Rewards" section, and click "Claim."

Q: Can I supply multiple assets?

Yes! Supply any supported asset to diversify your yield sources.