Liquidity Market

Supplying and Borrowing Assets

Hover provides a platform to allow your idle assets earn yield and work for you. Users can select any asset supported by the protocol and deposit it directly into Hover. These supplied assets are then lent out to other users, known as borrowers. The interest paid by borrowers generates yield for the suppliers.

Hover’s protocol operates on an algorithmic basis, meaning only the original depositor and collateralized borrowers can withdraw funds. Assets can be withdrawn anytime, as long as they are not being used as collateral for an active loan.

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Hover gives users the freedom to collateralize their deposited assets, allowing them to obtain a loan that accrues variable interest according to market demand. Unlike traditional loans, there are no fixed terms associated with Hover's lending service. Users have the liberty to repay the loan whenever they’d like, as long as their Health Factor stays above 1.

In the event the loan’s value drops below that of the collateral, the position would be liquidated and the funds are used to repay the depositors.