Tydro Questions Answered
Everything you need to know about the Tydro protocol. Can't find what you're looking for? Visit the team page or go back to the main app.
What exactly is Tydro?
Tydro is a decentralized, non-custodial liquidity protocol built on the Ink network. It is powered by Aave's battle-tested smart contract infrastructure. Users can supply crypto assets to earn yield or borrow against their collateral — without giving custody of their funds to any centralized party. The protocol runs entirely on-chain, meaning no single entity can freeze or redirect your assets. Think of it as a money market where supply and demand set the interest rates automatically, second by second.
How do I start supplying assets on Tydro?
First, connect a compatible Web3 wallet — MetaMask, Rabby, or any WalletConnect-supported wallet works fine. Switch to the Ink network inside your wallet. Then open the Tydro app, head to the Markets page, and pick the asset you want to supply. Click "Supply", enter the amount, and confirm two transactions: one approval and one deposit. That's it. Your balance starts accruing interest immediately, tracked in real time on the dashboard. There is no lock-up period for most assets.
What assets can I supply or borrow?
Tydro currently lists assets native to or bridged onto Ink: kBTC (Kraken Wrapped Bitcoin), USD₮0, ezETH, USDG, USDC, GHO, SolvBTC, USDe, weETH, sUSDe, and syrupUSDT. The list grows as governance approves new markets. Not every asset is borrowable — some, like ezETH and weETH, are collateral-only. Check the Markets table for the latest supply APY, borrow APY, and borrowability status for each token. Total market size has exceeded $400 million.
Is Tydro safe? Has the code been audited?
The Tydro platform inherits its core smart contracts from Aave v3, one of the most audited DeFi codebases in existence. Aave v3 has been reviewed by multiple independent security firms. That said, no protocol is entirely risk-free. Smart contract bugs, oracle failures, and market volatility are real risks. The team behind Tydro also conducts its own risk assessments for each new asset before listing. Always supply only what you can afford to lose, and keep an eye on your health factor if you are borrowing.
What is a health factor and why does it matter?
When you borrow on Tydro, the protocol calculates a health factor — a number that represents the ratio of your collateral value to your borrowed value, weighted by each asset's liquidation threshold. A health factor above 1 means your position is safe. Once it drops to 1 or below, a liquidation bot can repay part of your debt in exchange for a portion of your collateral at a discount. Keep your health factor well above 1.5 to give yourself a buffer against price swings. You can improve it by repaying debt or adding more collateral.
Can I borrow on Tydro if I only hold BTC?
Yes, provided you hold kBTC — Kraken's wrapped Bitcoin on Ink. Supply kBTC as collateral, and the protocol will give you a borrowing limit based on the asset's loan-to-value ratio. You can then borrow stablecoins like USDC or USD₮0 without selling your Bitcoin. This is a popular strategy for traders who want liquidity without triggering a taxable sale event. Bridge your BTC to Ink via Kraken's native pathway, then deposit into Tydro. Total kBTC supplied on the platform has surpassed $130 million.
How are interest rates determined?
Rates on Tydro are algorithmic. Each market has a utilization rate: total borrows divided by total supplied liquidity. As utilization rises, borrow APY increases to attract more suppliers and discourage excess borrowing. When utilization falls, rates drop. The specific curve — slope, kink point, and maximum rate — is set per asset by protocol governance. Variable borrow rates change block-by-block. Supply APY is always lower than borrow APY because the spread funds the protocol's reserve factor, a small insurance buffer.
What are INK points and how do I earn them?
INK points are a reward mechanism run by the Ink network to incentivize early protocol participation. Simply by supplying or borrowing assets on Tydro, you accumulate points over time. The exact conversion of points to rewards depends on future Ink network decisions. A new campaign was recently announced in the app's notification banner. Use the APY Calculator button in the header to model your potential returns — it factors in both base yield and bonus point rewards for supported assets like USDC, USD₮0, and USDG.
Why should I use Tydro instead of other lending protocols?
Honestly, the answer depends on what you need. Tydro is purpose-built for the Ink ecosystem, so transaction fees are a fraction of those on Ethereum mainnet. The protocol runs on Aave v3 infrastructure, which means battle-tested risk parameters, efficient collateral management, and a familiar UX for DeFi veterans. Ink's low latency also makes liquidation bots more responsive, which benefits the entire market. If your assets are already on Ink or you're bridging from Ethereum, Tydro offers competitive rates and a growing set of listed tokens.
How do I bridge assets to Ink before using Tydro?
The Tydro app includes a Bridge menu in the navigation bar. From there you can access Kraken's native bridge for kBTC and USDG, Bungee for ETH and USDC, Super Bridge for ETH from Ethereum mainnet, the USDT0 Native Bridge for USD₮0, Stargate for rsETH, and Aave's own bridge for GHO. Each bridge has different confirmation times and fee structures. For large amounts, check multiple bridges and compare fees before transacting. Once your assets land on Ink, they appear in your wallet and are ready to deposit into Tydro immediately.
Can I swap tokens directly inside Tydro?
Yes. The Tydro platform includes a Swap feature accessible from the top navigation. It lets you exchange one token for another on Ink without leaving the app. This is useful if you want to swap borrowed stablecoins into a different asset or rebalance your collateral quickly. Swap rates are sourced from on-chain liquidity pools. Always check the rate and slippage before confirming — for large trades, splitting into smaller transactions may get you a better average price.
What happens during a liquidation on Tydro?
When your health factor hits 1, anyone — typically an automated bot — can repay up to 50% of your outstanding debt and receive an equivalent value of your collateral plus a liquidation bonus. The bonus varies by asset but is typically 5–10%. This means you receive less collateral back than you deposited. Liquidations happen on-chain without warning. To avoid them: monitor your health factor daily, set price alerts for your collateral assets, and keep a buffer. Repaying even a small portion of debt can push your health factor back into a safe range fast.
Does Tydro have a governance token?
At the time of writing, Tydro does not have its own separate governance token. Protocol parameters are managed in coordination with the underlying Aave governance framework. The team behind Tydro monitors risk, proposes parameter changes, and responds to market conditions. As the protocol matures, decentralized governance structures may be introduced. Follow the official @tydrohq Twitter account and the documentation for announcements on this front.
How do Ethena multipliers work on Tydro?
Certain assets — currently USDe and sUSDe — display a "5x" badge next to an Ethena icon in the Markets table. This means that by supplying or borrowing those assets on Tydro, you earn Ethena's shard/ENA rewards at a multiplied rate compared to holding the tokens in a plain wallet. The multiplier is applied by Ethena's own reward tracking system, not by Tydro directly. It's a joint incentive between the two protocols. Check Ethena's official documentation for the exact reward calculation methodology and any caps that may apply.
Where can I find more technical documentation for Tydro?
The official docs live at docs.tydro.com. You'll find integration guides, contract addresses, risk parameter tables, and API references there. For deeper context on the Aave v3 architecture that Tydro builds on, the Aave developer portal is a solid resource. Questions about the team's vision and approach? The team page covers the protocol's background and philosophy. For urgent issues, reach out via the official Twitter or community channels listed in the footer.
