# Lending on Teller

Teller is built on peer-to-peer (P2P) lending. Lender can either (1) create liquidity offers, based on deterministic loan terms, or fill OTC loan requests from borrowers.<br>

### **How to lend on Teller?**&#x20;

There are two ways to lend on Teller:

1. **Deposit capital in a Lending Pool or Loan Commitment**

* Liquidity Providers (LPs) can supply to a specific pool with custom terms.
* Pools are sorted by lending token, ie (wETH, MATIC, or USDC).
* Loan terms can be modified (if not actively borrowed).&#x20;
* Supplied funds will not leave your wallet until a borrower requests a loan from the pool.&#x20;
* Supplied funds will not earn yield unless they are actively borrowed.

If the exact loan conditions are met, (as decided on by the LP) a loan will be funded and the supplied funds will transfer out of the lender's wallet.<br>

2. **Lend OTC to a borrower**

On any pool page, lenders can go to the (**Fund tab)** and view all active loan requests.

Lenders can then view the terms:

* Collateral Ratio / LTV
* APY
* Loan duration
* Borrower's loan history

After reviewing all the terms, a lender can decide to fund a loan request.

When a loan is funded, supplied funds immediately transfer out of the lender's wallet.<br>

### **Pool stats**

Lenders can view the historical pool stats when deciding which pool to supply to.

Some important stats to check:

* Pool Health
* Total loan volume&#x20;
* Average loan duration
* Default rate
* Total value of active loans
* And more

### **How much will I earn by lending?**

The average APY of lending offers and OTC loans on Teller can vary.&#x20;

Here are some general guidelines:&#x20;

* Loans with a higher APY&#x20;
  * Short duration
  * Low LTV&#x20;
  * Exotic collateral (NFTs, alt-coins, etc)<br>
* Loans with a lower APY
  * Long duration
  * High LTV
  * Stablecoins as collateral<br>

### **Are there any other incentives other than APY earned?**

Pool owners **can** provide additional rewards to encourage LPs to supply, (ie token rewards, more favorable terms, etc.)

At the current moment, specific pool rewards and APY is the only reward for LPs and lenders.<br>

### **Can I withdraw my assets before the loan matures?**&#x20;

No. The collateral and borrowed amount of a loan are locked until loan maturity.

## Video tutorials

#### How to lend on Teller

{% embed url="<https://www.youtube.com/watch?v=duIuhGAcCPE>" %}

{% embed url="<https://www.youtube.com/watch?index=4&list=PLzaqKff8QjtZYLVLv48_pqTQzWzPLcLGk&v=cyBctsg88oc>" %}

Loans on Teller have fixed durations.

If supplied funds **are not** actively borrowed, (they will remain in your wallet, and you can transfer them at any time.)

If supplied funds **are** actively borrowed, they cannot be withdrawn until the borrower pays back the loan.

As scheduled loan payments are made by the borrower, funds go directly back into the lender's wallet.


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