> For the complete documentation index, see [llms.txt](https://machfi.gitbook.io/machfi-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://machfi.gitbook.io/machfi-documentation/protocol/mechanics.md). # Mechanics **Lenders**\ MachFi empowers users to lend their digital assets through single-sided liquidity pools, commonly known as money markets. These pools enable users to earn variable interest on their assets, providing a pathway to passive income while enhancing the platform's liquidity ecosystem. Lending on MachFi not only generates returns but also acts as the gateway to unlocking additional platform features. By supplying assets, users gain the ability to borrow other assets, creating a flexible and seamless financial experience. Through MachFi’s lending system, users can maximize the utility of their digital assets, actively participating in a dynamic and decentralized financial marketplace. **Borrowers**\ MachFi enables users to leverage their digital assets by offering a seamless and efficient way to access over-collateralized loans. By supplying assets to the platform, users can unlock additional liquidity without liquidating their holdings, providing financial flexibility and preserving long-term asset value. The borrowing capacity is determined by the value of the collateral provided and governed by borrowing parameters established by MachFi Governance. These parameters are meticulously crafted to ensure platform stability and security while delivering a reliable and user-centric borrowing experience. Through this robust system, MachFi empowers users to optimize the utility of their digital assets, whether for strategic investments, personal needs, or leveraging opportunities—all while retaining full control over their collateralized holdings. --- # 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://machfi.gitbook.io/machfi-documentation/protocol/mechanics.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.