# Overview ## Lending Lending (Supplying) tokens to XLend allows users to earn interest while using them as collateral for borrowing. Tokens are added to the liquidity pool, where they accrue interest dynamically based on the market supply rate. Interest rates depend on the borrow utilization rate—calculated from the proportion of borrowed to supplied assets—and governance parameters. Interest rates adjust accordingly as liquidity is deposited, borrowed, or withdrawn. Suppliers on XLend can withdraw their tokens, including earned interest, **as long as there’s enough unborrowed liquidity in the pool**. The amount is limited by available reserves and the need to maintain a healthy collateral ratio to prevent liquidation. With an active borrow position, users must manage withdrawals carefully to keep their health factor above the liquidation threshold. ## Borrowing Borrowing on XLend allows users to unlock liquidity by using their supplied tokens as collateral, letting them access funds without selling their assets. Interest rates are dynamic, adjusting based on utilization rates - higher demand for borrowed liquidity leads to higher rates, encouraging efficient borrowing behavior. To prevent liquidation, borrowers need to maintain a strong collateral ratio, actively tracking their health factor to ensure it stays above the required threshold for over-collateralization. Repayment can be made using the same tokens that were borrowed, which helps increase the collateral ratio and reduces the risk of liquidation. --- # 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.extrafi.io/extrafi-xlend/borrow-lend/overview.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.