# 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](https://docs.libre.org/libre-docs/platform-docs/how-to-peg-in) 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.