# Lending Pools Each lending pool in Tarot 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 * Utilization — The ratio between Total Borrowed and Total Supply * Supply APR — The current effective APR earned by lenders for supplying tokens * Borrow APR — The current effective APR paid by borrowers for borrowing tokens * Farming APR — The current effective APR earned by borrowers for leveraging or borrowing tokens in a farming eligible pool * Leveraged LP APR — The estimated APR for a leveraged yield farming position, based on trading fees, vault rewards, and farming rewards (if applicable) ### Mechanics A lending pool consists of three (3) parts: * Borrowable0 — An interest-bearing contract for the first token (token0) in the token pair * Borrowable1 — An interest-bearing contract for the second token (token1) in the token pair * Collateral — A collateral contract for the LP token of the token pair ### Lending Lenders can deposit either token (token0 or token1) into its associated Borrowable contract for that token. In exchange, they receive an interest-bearing token, bTAROT, representing the underlying token with accrued interest. Later, they can exchange their interest-bearing token for the original token, with accrued interest, provided there is sufficient liquidity in the Borrowable contract for that token. ### Borrowing Borrowers can deposit LP tokens as collateral into the Collateral contract. With this collateral, a borrower can create a loan, which requires a certain amount of the underlying tokens, provided there is sufficient liquidity in both Borrowable contracts to create the loan. To enable leveraged yield farming, the Tarot Protocol uses tokens from Borrowable0 and Borrowable1 to add liquidity to the DEX for the token pair, adds the resulting LP tokens to the Collateral for the token pair, and sends the borrower cTAROT tokens, which represent the borrower’s initial collateral and borrowed LP tokens. ### Tarot Vaults Any lending pool with [Tarot Vaults](/tarot-protocol/tarot-vaults.md) enabled will earn and reinvest additional rewards. Rewards are accrued to anyone who deposits or leverages their collateral (LP tokens) in the lending pool, and periodically reinvested to buy more LP tokens on their behalf. ### Tarot Farming Rewards Leveraging or borrowing in a farming pool earns TAROT rewards. Borrowers who open a new borrowing or leveraged position in an eligible farming pool will accrue TAROT rewards. These rewards are claimable within the Tarot User Interface, in the Farm tab of the lending pool’s detail page. Users who already had a borrow or leveraged position in an eligible farming pool prior to the start of the Tarot Farming Rewards program will need to activate farming on the Farm tab of the lending pool’s detail page. ### 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](/tarot-protocol/liquidation.md) help to ensure the stability of the protocol. --- # Agent Instructions: 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.tarot.to/tarot-protocol/lending-pools.md?ask= ``` 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.