> For the complete documentation index, see [llms.txt](https://docs.liquify.ventures/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.liquify.ventures/lending-and-borrowing-module/overview.md). # Overview ### What is Liquify L\&B? Liquify L\&B is a decentralized lending platform that connects borrowers and lenders through collateralized loans. Think of it as a peer-to-peer lending marketplace where borrowers can secure loans by locking up cryptocurrency as collateral, while lenders earn interest by funding these loans.Key Concept: Borrowers provide collateral (like tokens) to secure their loans, and lenders fund the loans in exchange for interest payments. ### How it works (simple overview) #### The Loan Process: 1. Borrower Creates Loan → Locks up collateral tokens and sets loan terms 2. Lenders Fund Loan → Contribute USDC to fund the borrower's request 3. Borrower Claims Funds → Receives the raised USDC for their needs 4. Borrower Repays → Pays back the loan with interest 5. Lenders Get Paid → Receive their principal plus interest #### What happens if a borrower can't repay? * The loan gets liquidated * Lenders receive the borrower's collateral instead * This protects lenders from losses ### Key benefits for borrowers and lenders #### For Borrowers: * No Credit Checks - Your collateral secures the loan * Flexible Terms - Set your own loan amount, duration, and interest rate * Quick Access - Get funded in USDC without selling your tokens * Keep Your Tokens - Repay the loan to get your collateral back * Partial Funding - Can claim funds even if loan isn't 100% funded #### For Lenders: * Earn Interest - Get paid for funding loans * Collateral Protection - If borrower defaults, you get their collateral * Diversify Portfolio - Fund multiple loans to spread risk * Transparent Terms - See all loan details before funding * Flexible Investment - Fund any amount, from small to large --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.liquify.ventures/lending-and-borrowing-module/overview.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.