Borrow (Silk Earn): How to Deposit and Withdraw
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Silk Earn, within the , is a pool to facilitate liquidations for unhealthy loans. In other words, for loans at risk of liquidation, users can deposit SILK and pay off debt of liquidated borrowers in exchange for receiving discounted collateral from liquidated positions (discounts vary by vault; yield may vary based on market fluctuations).
By depositing into this pool, users help SILK remain solvent and properly collateralized by preventing buildup of bad debt. You may hear the term "Minting Silk" which is the act of new Silk being created by depositing acceptable collateral into a minting vault.
Watch this 35 second video for a visual tutorial:
Navigate to the and click Earn.
Here you have the option to Deposit or Withdraw SILK. For lending you will toggle Deposit.
Input the total amount of SILK you want to deposit and click Deposit SILK.
If this is your first time depositing SILK in the earn pools click “View Data” and approve the transaction.
To view pending rewards, create a permit and approve the transaction.
Then click Claim rewards and approve the transaction.
Navigate to the feature and click Earn.
Toggle to Withdraw
Enter the total amount you want to withdraw.
Click “Withdraw SILK”
Approve the transaction.
The Silk Earn pool empowers users to lock up SILK and earn from liquidated lend positions. In the earn pool, the protocol distributes liquidated collateral at a discounted rate to the Silk depositors. Passively earn yield with Silk - the more liquidation activity the more rewards for Silk Earn participants.
Information provided in this post is for general informational purposes only and does not constitute formal investment advice. Please read the full disclaimer at before relying on any information herein.