> For the complete documentation index, see [llms.txt](https://docs.folks.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.folks.finance/functionalities/lending-pools.md).

# Lending Pools

**Lending Pools** are an innovative tool made in collaboration with [Tinyman](https://app.tinyman.org/#/swap?asset_in=0\&asset_out=31566704) and [Pact.fi](https://app.pact.fi/). Lending pools allow liquidity providers to accrue yield from Folks Finance's lending pools and liquidity pools on a DEX at the same time by increasing the efficiency of deposited assets.

**Lending Pools are DEX pools comprised of interest-bearing assets.**\
If you use Lending Pools for ALGO-USDC, you will receive:

* The interest from the ALGO deposit on Folks Finance.
* The interest from the USDC deposit on Folks Finance.
* The swap fees from the DEX pool.

This innovation will grant **deeper liquidity**, **greater TVL** and **higher yield.**

### How to Start with Lending Pools?

#### Lending pools on PactFi

{% embed url="<https://www.youtube.com/watch?v=Lo9y-5Ir5Fc>" %}

#### Lending pools on Tinyman

{% embed url="<https://www.youtube.com/watch?v=I7qBX8RUCUo>" %}

1. Go to [app.folks.finance](https://app.folks.finance/deposit) and choose a pair of tokens to deposit in Lending Pools.
2. After you click Deposit, you will be redirected to Pact or Tinyman.
3. Choose the amount for providing liquidity.

If you’re new to Folks Finance,[ start at the Academy](http://academy.folks.finance).


---

# 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:

```
GET https://docs.folks.finance/functionalities/lending-pools.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.