# 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.
