> For the complete documentation index, see [llms.txt](https://ezfi.gitbook.io/arcogitbook/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ezfi.gitbook.io/arcogitbook/features/swap.md). # Lending and borrowing Each lending pool in ARCO is associated with a DEX and a token pair. The following high-level information is provided for each lending pool: * Total Supply — The total amount of tokens supplied to the lending pool * Total Borrowed — The total amount of tokens borrowed from the lending pool * Borrow limit — The ratio between Total Borrowed and Total Supply * Supply APY — The current effective APY earned by lenders for supplying tokens * Borrow APY — The current effective APY paid by borrowers for borrowing tokens ### **Lending & Borrowing** Lenders can deposit either token into its associated Supplyable contract for that token. With this collateral, a borrower can create a loan, which requires a certain amount of the underlying tokens, provided there is sufficient liquidity in Borrowable contracts to create the loan. Later, they can exchange their interest-bearing token for the original token, with accrued interest, provided there is sufficient liquidity in the Supplyable contract for that token. ### Liquidation If, at any time, the collateral value for a borrower’s loan is less than the minimum collateral required, the loan can be liquidated. Anyone can liquidate a loan in a liquidatable state in a permissionless manner. The liquidator repays the loan and receives, in exchange, the value of the borrowed LP tokens multiplied by the liquidation incentive. The liquidation mechanics help to ensure the stability of the protocol. --- # 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://ezfi.gitbook.io/arcogitbook/features/swap.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.