# Depositing

<figure><img src="https://3987726685-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FGbB5NEhoy3EuFRP2zTTP%2Fuploads%2FUBZrDwbdjafd5onzQnCS%2FDepositing.png?alt=media&#x26;token=631886ce-079a-489e-9d0d-ef442ed2f071" alt=""><figcaption></figcaption></figure>

By depositing your favored listed assets, you will be able to receive rewards (lending fee income) in the form of APOLLO tokens.

### Rewards for Depositors

#### Reward 1: Fixed reward

Part of the APOLLO token supply will be distributed to lenders across all pools over the course of 12 months.

#### Reward 2: Loan interest reward

When a borrower pays the interest rate they have generated by borrowing an asset, a portion of that amount will be distributed among the depositors (lenders) of the asset. To be more specific, 80% to 90% of the payment amount will be used to buyback APOLLO tokens, which will be distributed to the depositors (lenders) of the asset, while the remaining 10% to 20% will be used in accordance with the respective [Reserve Factor](https://apollo-protocol.gitbook.io/apollo-protocol/assets/risk-parameters#reserve-factor).

**Reward 3: Borrower liquidation reward**

If an asset borrower does not return the full amount (borrowed asset amount + interest) that he owe, he will be liquidated by the protocol. The amount that is liquidated (the collateral that the borrower provided before borrowing) will be distributed in the same manner as the loan interest reward. In the event that a borrower has returned some of the required amount prior to the liquidation, that amount will also be distributed to the asset depositors (lenders).

### Asset interest rate

The interest rate of an asset is calculated by the utilization rate *U*.

> $$U \hspace{1mm} = \hspace{1mm} Total Borrows \hspace{2mm} / \hspace{2mm}Total Liquidity$$

* TotalBorrows - The total asset amount (in dollars) borrowed by the protocol users
* TotalLiquidity -  The total asset amount (in dollars) present on the protocol

As U gets closer to 100%, depositors run the risk of not being able to withdraw their assets, which leads to a higher interest rate. For instance, when an asset is scarce, it requires high-interest rates for repayments of loans and additional deposits.


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