# Supplying

#### What is supplying?

Supplying is the action of providing an asset to a money market pool on Minterest for the purpose of allowing that asset to be borrowed by another party. As compensation, the supplier earns a market interest rate and additional rewards in Minterest's native MINTY token.

#### **Can supplying incur an impermanent loss?**

Minterest’s single-asset pools are not exposed to DEX-style impermanent-loss mechanics. Minterest is a lending platform with single-asset supplying and borrowing which incurs no impermanent loss. Impermanent loss is faced on DEXs (i.e. Uniswap) where two different assets are supplied in equal value and are then exposed to price volatility that can result in a greater loss for having supplied them than by simply holding them.&#x20;

#### How can I supply?

To supply an asset on Minterest, go to the "Markets" or "Dashboard" page and click "Supply" for the asset you want to provide. Choose the amount you want to supply and submit the transaction. Once the transaction is confirmed, your supply is successfully registered and you start earning interest.\
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\&#xNAN;*Please note that the supply of an asset requires an approval transaction.*

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

Minterest does not impose any minimum or maximum limits on the amount you can supply. This means that you're free to provide any amount of an asset that you'd like. However, it's worth noting that for very low amounts, the transaction costs of supplying may exceed the expected earnings.&#x20;

#### What does the toggle for "collateral" mean?

Minterest is an over-collateralized lending protocol. This means that users who wish to borrow must supply assets first which can be used as collateral to back a loan. Enabling the collateral toggle allows for that asset to be used as collateral to back a borrow position.

#### Can I enable or disable my supply as collateral?

Yes. Once you've supplied your assets, you can choose to enable or disable using them as collateral. Simply go to the "Assets table" on your dashboard page and toggle the "collateral" switch for the asset you want to change. \
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\&#xNAN;*Please note that you can still withdraw your assets without opting out of using them as collateral, as long as they aren't actively being used to borrow and won't cause a liquidation on your loans.*

#### What is the difference between Interest rate and MINTY rewards for supply?

When you supply assets on Minterest, you earn both market interest rate payments in the token supplied and MINTY rewards. \
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The MINTY rewards are calculated based on your share of the supply amount, while the interest rate payments depend on the market's utilisation rate and the share of interest paid by borrowers. \
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Similarly, borrowers on Minterest pay interest rates on their borrowed assets and receive MINTY rewards based on their share of the total borrowed amount. \
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Both the interest rate and MINTY rewards are dynamic and update constantly, and you can find more information about the APR and rate changes of each asset on the market details page.

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If you still have any questions or issues, don't hesitate to contact the Minterest team through the [website](https://minterest.com/) chat or the [Discord](https://discord.gg/NczktNwzf4) and [Telegram](https://t.me/MinterestFinanceChat) channels. We're always here to assist you!
{% endhint %}


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