# Arcadia Lending Pools Arcadia Lending offers isolated lending pools where [Lenders](/users/lenders.md) supply assets to earn passive yield. [Strategists](/users/strategists.md) and [Farmers](/users/farmers.md) can borrow funds from the lending pools, using their [Arcadia Accounts](/introduction/concepts/arcadia-defi-accounts.md) as collateral, and pay interests to the Lenders. Deposits in Arcadia’s lending pools can be [covered](/security-and-risk/insurance.md), protecting deposits against smart contract exploits. Currently, Arcadia supports **USDC, wETH, and cbBTC lending pools**, each operating independently. These pools follow the ERC-4626 vault standard, making them compatible with platforms like **Superform** and **Harvest FInance**. #### **How It Works** * **Lenders** deposit assets and receive **yield-bearing tokens** that automatically accrue yield. * **Borrowers** use Arcadia Accounts to create leveraged liquidity positions on various DEXs. * **Interest rates** adjust based on pool utilization—higher borrowing demand means higher returns for lenders. * **Liquidations** ensure unhealthy positions are closed before bad debt occurs, with lenders earning a share of penalties paid by the liquidated Accounts. For information related to fees, see [Fees](/protocol/fees.md). --- # 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.arcadia.finance/introduction/concepts/lending-pools.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.