> For the complete documentation index, see [llms.txt](https://debit.teller.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://debit.teller.org/how-debit-works/lending-pools-and-their-pre-set-terms.md). # Lending pools and their pre-set terms Onchain lending begins with lenders, not borrowers. A lender supplies capital to an isolated lending pool, and each pool is deployed with a fixed set of terms that every loan drawn from it must follow. Anyone can launch a pool permissionlessly, from the app or through the pool factory contract, so the terms are set by the market rather than dictated by the protocol. A pool's pre-set terms are: * **Supply token.** The ERC-20 asset lenders provide and borrowers receive. This is typically a stablecoin such as USDC or USDT, or an asset like WETH. * **Collateral token.** The single ERC-20 asset a borrower must lock to draw from the pool, for example WBTC or WETH. * **Collateralization ratio.** The collateral value required for each unit borrowed, with a minimum of 100%. A 500% ratio means five dollars of collateral for every dollar borrowed, equal to a 20% loan-to-value. * **Interest rate range.** The pool's yield band. The rate moves within the range based on utilization, the amount actively borrowed relative to the amount available. * **Duration per loan.** The maximum time a loan can stay outstanding before it must be repaid or extended. * **Debt threshold.** The maximum that can be borrowed from the pool, which also governs how much a lender can withdraw at any moment. * **LTV oracle route.** The onchain price route, using Uniswap V3, that values the collateral against the supply token when a loan is opened. Each pool is isolated to one supply token and one collateral token, so its risk and its yield are self-contained. --- # 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://debit.teller.org/how-debit-works/lending-pools-and-their-pre-set-terms.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.