> For the complete documentation index, see [llms.txt](https://docs.tydro.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tydro.com/introduction/concepts/lending-protocol.md). # Lending Protocol A lending protocol is a decentralised system of smart contracts that allows users to supply and borrow digital assets. Tydro operates on a collateralised lending model, where users deposit assets into protocol-managed pools to earn interest, and other users borrow from those pools by providing collateral that exceeds the borrowed amount. The protocol is deployed within the Ink ecosystem, ensuring seamless integration with ecosystem-aligned assets and applications Tydro is non-custodial, meaning users retain full control over their assets. All interactions take place through self-custodial wallets, with supply and borrow actions executed by permissionless smart contracts. These contracts enforce rules such as interest rates, loan-to-value ratios, and liquidation thresholds, providing a transparent and trust-minimised experience. Liquidity on Tydro flows through Aave-powered pools, leveraging Aave’s battle-tested infrastructure to support efficient and secure lending at scale. Tydro also includes features such as INK rewards and real-time LTV alerts, and supports ecosystem-aligned assets like USDG, kBTC, and GHO. As part of the broader Ink ecosystem, it provides secure and efficient access to capital through a minimal and composable lending layer --- # 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.tydro.com/introduction/concepts/lending-protocol.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.