# 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.

<figure><img src="/files/gBp8IIhQLbCtaa69YlwI" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/G6J4IW48sJMxFkgbT77p" alt=""><figcaption></figcaption></figure>


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