# Lending Lending on TownSquare allows you to deposit assets to be borrowed by others, earning you yields in base interest fee (base APY) & incentives. Unlike a market model where liquidity is divided into several lend/borrow pairs for an asset, lending deposits on TownSquare pools can be borrowed against any collateral, increasing capital utilization and potential lending yield. *** #### User guide Refer to the [Deposit to Earn guide](/user-guide/deposit-to-earn.md) for how to lend and earn on TownSquare. --- # 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.townsq.xyz/lending-and-borrowing-on-townsquare/lending.md?ask= ``` 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.