> For the complete documentation index, see [llms.txt](https://midl.gitbook.io/midl/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://midl.gitbook.io/midl/examples-of-use/lending.md).

# Lending

Another example is a  fork of Compound v2 designed for borrowing and lending native Bitcoin assets, currently running on Bitcoin's testnet 4. 

dApp is based on decentralized lending pools where users can supply assets to earn interest or borrow against their collateral. Interest rates are algorithmically determined by supply and demand for each asset. Our fork mirrors this system, with users supplying Bitcoin assets to a lending pool and earning interest, or borrowing against the assets they've supplied.

The dApp also remains independent and does not represent the official Compound protocol, focusing solely on enabling lending and borrowing within Bitcoin’s testnet environment.