Credit

To lend, you first visit the Lending tab in the Para app. When you lend out proceeds, you are buying future cash payments at a discount. These future cash payments are represented by tokens we call "fyTokens". fyToken is a token that can be redeemed one-to-one for the underlying asset at a future date. FyToken itself does not pay interest, the interest depends on the difference between the face value of the token and the price you paid. The fixed rate you get when you lend is determined by the built-in automated market, the more you lend, the lower your rate is likely to be.