💰Lending Earn

When a trader initiates a leveraged trading position, whether long or short, they acquire a loan from the liquidity pool at the prevailing Hourly Interest Rate (HIR). Consequently, for leveraged trading to be feasible, Liquidity Providers (LP) must uphold sufficient liquidity in these pools. Anyone can become a liquidity provider by contributing liquidity to these pools.

Bubblebot maintains single-asset liquidity pools on the BNB Chain (BNB), three single-asset pools on the Polygon Network (MATIC, ETH, and USDC), and two on Avalanche (USDT and AVAX), which are utilized for opening long positions.

For short positions, there is a corresponding lending pool for each token listed on Bubblebot. In this scenario, liquidity providers lend tokens to facilitate shorting.

When a user deposits assets into a liquidity pool, they receive interest-bearing tokens representing the liquidity provider's portion of the pool. For instance, depositing BNB into liquidity pools results in LPs receiving tBNB tokens.

When a Liquidity Provider (LP) intends to withdraw liquidity from the pool, they must convert tBNB tokens back into BNB.

Please be aware that the exchange rates of tBNB/BNB and are expected to increase over time. Therefore, when you provide liquidity, they may not be equal to 1.