# Depositing

You can deposit a range of assets and receive interest bearing tokens (we call it sTokens, such as sUSDC, sWBTC and etc.) to earn passive income.&#x20;

## FAQ

### What is an sToken?

sToken is a deposit certificate of an underlying asset that accumulates interests from being borrowed on SiO2 Finance. sToken is redeemable at any time at a 1-to-1 rate with the underlying asset on SiO2 Finance as long as liquidity is available. For example, one sWBTC can redeem one WBTC.

### What are the benefits of being a depositor?&#x20;

Depositors of SiO2 Finance can benefit from three major rewards:

1. **The Interest Rate on Loans:** An interest rate paid by a borrower of an asset is distributed to depositors. The interest rate of an asset is calculated by the utilization rate `U = total_borrow / total_deposit` (See details at [Interest Rate Model](../systems/interest-rate-model) section). When U gets closer to 100%, depositors risk 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.&#x20;
2. **Flash Loan Fees**: SiO2 returns 0.09% of the volume used in Flash Loan to depositors. See more at [One-click Short Position](../advanced-functionality/one-click-flash-loan) page
3. **SIO2 token incentives**: SiO2 Finance allocates [a certain portion](../tokenomics) of the SIO2 token for marketing to facilitate the ecosystem. Some portion of the incentives are embedded in the protocol to distribution without human intervention, and some portion are reserved for special events.

See more details at this [section](../../systems/interest-rate-model#what-is-deposit-apy).





