> For the complete documentation index, see [llms.txt](https://docs.lif3.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lif3.com/terrace/lending-pools/borrowing.md).

# Borrowing

Borrowers can add LP tokens to the Collateral contract as collateral. If there is enough liquidity in both Borrowable contracts to form the loan, a borrower can use this collateral to create a loan that needs a specific number of the underlying tokens. The Lif3 Protocol uses tokens from Borrowable0 and Borrowable1 to add liquidity to the DEX for the token pair to enable leveraged yield farming.

<figure><img src="https://3146606606-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FfzPD3xysOPgVWcTTbXVE%2Fuploads%2F1TUnPBVI9A0fdxUawqC6%2F12.png?alt=media&amp;token=a4a6e738-8490-4b98-bfb9-67b49eefe0a0" alt=""><figcaption></figcaption></figure>

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