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  • Core Terms
  • Lending on LENDBIT
    • Creating a Lending Pool
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    • Creating a Borrow Order
      • Depositing Collateral
    • Loan-to-Value (LTV) Ratios
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  • Flexible Lending Pools
    • Pool Flexibility
    • Borrower Allocation Percentages
    • Benefits of Flexible Pools
  • Architecture Diagrams
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    • Lending-related Questions
    • Borrowing-related Questions
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  1. Flexible Lending Pools

Benefits of Flexible Pools

Flexible lending pools offer significant benefits to both lenders and borrowers:

  • For Lenders:

    • Risk Diversification: By lending to multiple borrowers, lenders reduce their risk exposure to any single borrower.

    • Increased Earnings: Lenders can maximize the utilization of their pool by distributing funds to multiple borrowers, ensuring continuous returns.

    • Customization: Flexibility in setting terms for each borrower allows lenders to tailor their risk and return preferences.

  • For Borrowers:

    • More Loan Opportunities: Borrowers benefit from multiple lending pools where they can negotiate terms with different lenders.

    • Flexible Terms: Borrowers have the chance to secure more favorable loan conditions by accessing various pools rather than relying on a single lender.

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Last updated 7 months ago