> For the complete documentation index, see [llms.txt](https://evaa-1.gitbook.io/evaa-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://evaa-1.gitbook.io/evaa-documentation/lending-and-borrowing/lending.md).

# Lending

When a user deposits their tokens into the protocol, they will receive a derivative representing their underlying deposit.

For example, when ETH is deposited, the user will receive a corresponding amount of eETH (EEVA-ETH). The exchange rate for ETH/eETH is 1 to 1. Interest is accrued each block and changes dynamically with the utilization of the pool.

If ETH suppliers earn 5% APR on a given block, then the amount of the derivative token they have will also increase at a 5% annual rate for the block. When the user withdraws their tokens from the platform, they are simply exchanging their eETH back for ETH.