# Protocol Use-Cases Teller Protocol facilitates on-chain lending between two parties in a way that is permissionless and trustless. Most typically, loans facilitated with the protocol are over-collateralized. This is important so borrowers have an incentive to pay back the loan with interest instead of letting the loan go in to default which would leave the lender with only the collateral. Users of Teller Protocol typically fall in to two different categories: \ **Lenders** can earn interest over time by lending ERC20-based capital assets either in individual loans or through Lender Pools. **Borrowers** can lock up their ERC20-based assets as collateral in order to borrow other capital assets for a pre-specified duration. The borrower can then use this borrowed asset in any way that they wish: selling it immediately, staking it in another pool to earn, holding it, or anything else that is possible in DeFi. In this way, the borrower will be 'in debt' in terms of that borrowed asset and can unlock their collateral by repaying that debt before the default date. For borrowers, all loans on Teller Protocol are time-based instead of price-based. This means that price will never cause a loan to default, only time elapsed (expiration.) Furthermore, Teller Protocol has modules that make it very simple to 'Rollover' or extend a loan. Have an idea for our protocol? Let us know! --- # 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.teller.org/teller-v2/protocol-architecture/protocol-use-cases.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.