# Deposit

Dynamics behind the deposit operation.

Last updated

Dynamics behind the deposit operation.

Last updated

Considering a user depositing a certain amount $A_{t_i}$ of Token at a certain time $t_i$, they receive an amount $M_{t_i}$of fToken calculated as follows:

$M_{t_i} = \frac{A_{t_i}}{I_{d_{t_i}}}$

Where $I_{d_i}$ is the monotonic value index (defined here) that keeps track of the deposit interest rate variation over time. Users are allowed to deposit repeatedly, and the protocols keep records of the interests each time as follows:

$M_{t_1} = A_{t_1}/I_{t_1}$

$M_{t_2} = M_{t_1} + A_{t_2}/I_{t_2}$

$M_{t_3} = M_{t_2} + A_{t_3}/I_{t_3}$

Lock & Earn

In the *Lock & Earn *operation, the amount $M_{t_i}$, is not given at the same time as the deposit of amount $A_{t_i}$, but will be released at the end of the locking period. To have a deeper understanding on the Lock & Earn operation open this link.