Lending & Borrowing on LineaBank
LineaBank's lending system is a player-to-protocol model based on over-collateralization. Users can freely supply assets to LineaBank, borrow funds, and receive $LAB tokens as rewards for all their actions.
By providing liquidity to LineaBank's supply market, users receive lTokens that represent their proportional share of that loan pool. Over time, their value increases due to accumulated interest. Upon closing the loan, the user returns these tokens and receives the increased value back.

100% code-based environment

Our lending system operates on a 100% code-based environment, removing intermediaries, and automatically adjusting borrowing and lending rates based on pre-defined factors. For instance, if the capital utilization rate in the pool is high, the interest rate will increase, prompting borrowers to repay their debts. This ensures that liquidity is always maintained appropriately, providing users with safer usability.