# Fringe Lending

**Fringe Lending** (previously **Primary Lending Platform**) is a non-custodial, permissionless DeFi lending facility. 

Within Fringe Lending:

* [**Lenders**](https://docs.fringe.fi/fringe-finance-docs/PLP/lending) can deposit whitelisted assets to the Primary Capital Pool to earn interest from borrowers who borrow these assets.
* [**Borrowers**](https://docs.fringe.fi/fringe-finance-docs/PLP/borrowing) deposit whitelisted altcoin assets to the Primary Collateral Safes, which can be used as collateral against which they can borrow assets from the Primary Capital Pools.
* **Liquidators** liquidate borrower positions that are below the minimum collateralization level.

**The two diagrams below illustrate the key functions, participants, and interactions in Fringe Lending:**

<figure><img src="https://lh3.googleusercontent.com/2PYV6srUf2Z2pZjGzhePLPpiS-ISGxDN2nTG5rsXMjvZIJHrLg8pouZ6vbc7Etzigop7velr3OaB75NaoYHo8XMgbZIdSvbJ-9Zh6ex0SLq5pF6HAapzv4d7cdH_lhGxclovfvLiJPAXT9sIt9q8dfo" alt=""><figcaption><p>Functioning of the Fringe Lending Facility</p></figcaption></figure>

Users can interact with Fringe Lending in a number of ways, as diagrammed below:&#x20;

<figure><img src="/files/DMxzG8nVEYv2B4sqxLZS" alt=""><figcaption><p>Fringe Lending interactions.</p></figcaption></figure>

\
Fringe’s Lending facility is comprised of the following key features:

1. The[ Primary Capital Pool](https://docs.fringe.fi/fringe-finance-docs/PLP/lending#depositing-stablecoins), which is limited to select stablecoins.
2. Platform fees, a proportion of which are to be distributed as rewards to FRIN token stakers.
3. Primary Collateral Safes, into which borrowers deposit collateral, and which reflect their borrowing capacity.

Collateral types accepted into Primary Collateral Safes are assigned a **Loan to Value Ratio (LVR)** through our approach to[ parameter asset modeling](https://docs.fringe.fi/fringe-finance-docs/PLP/parameter-modeling).

### LP token support

Whitelisted LP tokens can be used as collateral when borrowing assets on Fringe’s Lending Platform. This offers Fringe users unprecedented flexibility and access to the untapped value of Liquidity Pool tokens.&#x20;

Through overcollateralized loans, liquidity providers can unlock this value without closing their LP positions, giving them access to stablecoin capital to participate in other DeFi opportunities or increase their exposure to liquidity pool yields through leverage.&#x20;

With this, Fringe Finance enables LP providers to further optimize their yield-earning positions.

Fringe’s v2 will implement this along with safety mechanisms that safeguard stability and platform solvency.

**In the next pages of this section, we will explore in detail the user roles and mechanisms of Fringe Lending.**


---

# 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.fringe.fi/fringe-finance-docs/plp/fringe-lending.md?ask=<question>
```

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.