# Lending

## Overview

Libre offers lenders the opportunity to earn **fixed APR returns** by providing USDT liquidity to lending pools. All loans are secured by segregated Bitcoin collateral, ensuring transparency and minimizing risk.

## How Lending Works

### Step 1: Choose Your Pool

Select from active lending pools with different terms and rates. Each pool offers a fixed APR—you'll know exactly what you'll earn before depositing.

View current pool rates and availability at [defi.libre.org/lend](https://defi.libre.org/lend).

### Step 2: Deposit USDT

1. Visit [defi.libre.org/lend](https://defi.libre.org/lend)
2. Choose your preferred pool and deposit amount
3. Receive **TP (Tether Pool) tokens** representing your stake
4. Your USDT becomes available for borrowers immediately

{% hint style="info" %}
**Need USDT on Libre?** Check out our [How to Peg-In USDT guide](/libre-docs/platform-docs/how-to-peg-in.md) to bridge USDT from Ethereum.
{% endhint %}

### Step 3: Earn Fixed Returns

* **Guaranteed rates**: Earn the fixed APR regardless of utilization
* **Real-time tracking**: Monitor your earnings and pool performance
* **TP token appreciation**: Your TP tokens increase in value as interest accrues

### Step 4: Redeem Your Funds

* **Flexible exit**: Redeem TP tokens for USDT + interest anytime
* **Tradeable positions**: TP tokens can be transferred or sold to other users
* **No lock-up periods**: Access your funds based on pool liquidity

## Pool Mechanics

### TP Tokens

When you lend USDT, you receive TP (Tether Pool) tokens that:

* Represent your proportional share of the pool
* Automatically accrue interest over time
* Can be redeemed 1:1 for USDT + earned interest
* Are fully transferable to other Libre accounts

### Interest Calculation

* **Fixed APR**: Each pool has a set annual percentage rate
* **Pro-rata earnings**: Interest distributed proportionally to all lenders
* **Compound growth**: Reinvest earnings by staying in the pool

## Security Features

### Bitcoin-Backed Loans

Every USDT you lend is secured by:

* **200%+ collateralization**: Loans require significant Bitcoin backing
* **Segregated vaults**: Each borrower's Bitcoin is held separately
* **On-chain verification**: All collateral addresses are publicly auditable
* **Automatic liquidation**: Smart contracts protect lender funds

### Risk Management

* **LTV monitoring**: Loan-to-value ratios tracked in real-time
* **72-hour liquidation buffer**: Borrowers have time to add collateral
* **No speculative risk**: Your funds aren't used for trading or derivatives

## Example Investment

**Scenario**: Lend $10,000 to the 90-day, 11% APR pool

1. **Initial deposit**: $10,000 USDT
2. **TP tokens received**: 10,000 TP tokens (1:1 initial ratio)
3. **Expected earnings**: $275 over 90 days (11% APR)
4. **Final redemption**: 10,275 USDT when you exit

## Benefits for Lenders

* **Predictable yield**: Fixed rates provide certainty
* **Bitcoin-secured**: All loans backed by segregated Bitcoin collateral
* **Full transparency**: Audit all collateral and loan data on-chain
* **Flexible terms**: Choose from multiple duration and rate options
* **No intermediaries**: Direct smart contract interaction
* **Tradeable positions**: TP tokens can be sold if you need early liquidity

## Getting Started

Ready to earn fixed yield? Visit [defi.libre.org/lend](https://defi.libre.org/lend) to:

1. Connect your wallet
2. Choose a lending pool that fits your timeline and risk tolerance
3. Deposit USDT and receive TP tokens
4. Monitor your earnings and redeem when ready

## FAQ

**Q: Are my funds at risk?** A: All loans are secured by Bitcoin collateral worth 200%+ of the loan amount, held in segregated vaults that can be audited on-chain.

**Q: What if no one borrows from my pool?** A: You earn the fixed APR regardless of utilization. Higher-rate pools tend to have more borrower demand.

**Q: Can I withdraw early?** A: Yes, you can redeem TP tokens anytime subject to pool liquidity. You can also sell your TP tokens to other users.

**Q: How are liquidations handled?** A: Smart contracts automatically liquidate undercollateralized loans after a 72-hour grace period, protecting lender funds.

**Q: What's the minimum deposit?** A: There's no minimum deposit requirement - you can lend any amount of USDT.


---

# Agent Instructions: 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:

```
GET https://docs.libre.org/libre-docs/core-features/overview-1.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
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.