> For the complete documentation index, see [llms.txt](https://kimochi.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kimochi.gitbook.io/docs/products/lending-and-borrowing.md). # Lending & Borrowing ### Coming soon... Wildly popular recently, several Decentralized Finance (DeFi) protocols allow you to lend out your cryptocurrencies without requiring a middleman ([Compound](https://compound.finance/) or [Aave](https://app.aave.com/)). Instead, a smart contract would be used to ensure that the loan would be handled correctly. This smart contract will automatically make transactions if certain predetermined conditions are met. When lending crypto, your assets are no longer in your possession: you are sending them to a smart contract. What you’ll get in returns are bonds that prove you are the owner of these lended assets. Security is of course a concern here. In case of the most well known DeFi lending protocols, its smart contracts are well audited and public so that everyone can verify it manually. While that won’t exclude potential vulnerabilities, it does give some form of reassurance. Unfortunately for DeFi, its smart contract operations means that it’s limited to a single blockchain. Therefore, the options as to which crypto you can lend are usually limited. Most often, it only concerns ERC20 tokens (running on the Ethereum blockchain). Kimochi Finance's Lending & Borrowing product was born to solve this problem. ![](/files/-MT4Sy48KHI9VqYo8ZCI) --- # 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, and the optional `goal` query parameter: ``` GET https://kimochi.gitbook.io/docs/products/lending-and-borrowing.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.