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Lending Pool

A “lending pool” smart contract allows a lender to deposit funds into a pool which pool participants can then borrow. Similar to Liquidity Pools, Lenders receive “IOU” tokens to track balance and rewards. Borrowers take out over collateralized debt positions and pay fees to the lending pool which are distributed to the lenders.

Note: These are non-technical definitions meant for a general audience and should not be used as legal definition
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