> For the complete documentation index, see [llms.txt](https://docs.arcadia.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.arcadia.finance/introduction/concepts/lending-pools.md).

# 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).