> For the complete documentation index, see [llms.txt](https://docs.invast.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.invast.io/rwa-suite-and-dapp-ecosystem/lending-and-borrowing-platform/how-does-it-work.md).
# How does it work?
**Liquidity Providers:**
* Deposit stablecoins (e.g., USDC, USDT) or other supported assets into RWA lending pools.
* Earn a proportional share of the interest paid by borrowers.
**Borrowers:**
* Deposit tokenized RWAs (e.g., an NFT representing real estate worth $100,000).
* Borrow up to a specified percentage of its value (e.g., 70%, or $70,000) in stablecoins or other supported assets.
* Maintain the required collateral ratio to avoid liquidation.
**Example Use Case:**
* **Alice** owns a fractional NFT representing $100,000 worth of real estate.
* She deposits this NFT as collateral and borrows $70,000 in USDC.
* Alice reinvests the borrowed funds into other INVAST products, such as real estate-backed pools on the INVAST DEX or fractional real estate, to generate additional yield.
