# Lend and Borrow ## Lending and Borrowing on Rhombus This section explains Rhombus' lending protocol in detail. ### How does traditional lending work? Traditional finance (TradFi) loans are neither inclusive nor permissionless. Banks, credit agencies, and other intermediaries handle user data and dictate loan terms, which makes the process slow and selective. Unlike DeFi, where loans can be secured in seconds, getting a substantial loan in TradFi often requires lengthy approval processes. ### How is Rhombus different from traditional lending? Rhombus offers a permissionless, decentralized lending protocol that enables users to lend and borrow without needing approval or disclosing personal information. No matter your financial background or location, you can access lending services with ease. By simply connecting your wallet, you can deposit collateral and immediately receive a loan without the hassle of paperwork or weeks of waiting for approval. #### Benefits of Lending and Borrowing on Rhombus Rhombus provides more than just lending services — users earn rewards for both supplying and borrowing crypto assets. You can take advantage of competitive supply and borrow APYs, accumulate ecosystem points, and even gain rewards from partner projects. ### Leveraging Market Opportunities with DeFi Loans on Rhombus In DeFi, maximizing the use of your capital is key to success. With Rhombus, you can use loans to leverage your assets and hold multiple tokens using the same collateral. For example, if you’re an KAIA investor with confidence in the KAIA ecosystem’s future, you don’t have to just hold your KAIA. Instead, you can deposit it as collateral on Rhombus, borrow USDT, and invest in other tokens within the KAIA ecosystem. Of course, this involves leveraging, which introduces added risk, but with careful management, you can potentially amplify your returns. --- # 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.rhombusprotocol.io/basics/lend-and-borrow.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.