> For the complete documentation index, see [llms.txt](https://docs.sixpence.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sixpence.xyz/introducing-sixpence/supply-and-borrow.md).

# Supply & Borrow

Supply and Borrow turn your on chain assets into productive capital, allowing you to earn yield while staying exposed and unlocking liquidity through collateral.

### Feature Overview

Supply & Borrow lets you:

* Supply assets and start earning from lending demand
* Stay exposed while your assets generate yield
* Use your assets as collateral
* Borrow without selling
* Unlock liquidity and put it to work

### Step-by-Step Guide

**1.Supply**

<figure><img src="https://915115796-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F3EQ0uFpO0WhywcZcLMWr%2Fuploads%2FmfhnU1OTVWXBvY7z1oFj%2Fimage.png?alt=media&amp;token=ec20edb6-b9c4-401e-ab5d-654cbb8313eb" alt=""><figcaption></figcaption></figure>

Choose the asset you want to supply as liquidity.

**2.Supply Transaction**

<figure><img src="https://915115796-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F3EQ0uFpO0WhywcZcLMWr%2Fuploads%2FdfOcv6uhid46WHr3MpwJ%2Fimage.png?alt=media&amp;token=d4d98e1a-2cb5-4f0f-aed2-d7fa1e1f0cda" alt=""><figcaption></figcaption></figure>

Check the supply APY, enter the amount, choose a gas speed, and confirm.

**3.Borrow**

<figure><img src="https://915115796-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F3EQ0uFpO0WhywcZcLMWr%2Fuploads%2F0WxoywyLBwrjxZR7o1Et%2Fimage.png?alt=media&amp;token=6f36fd13-1d80-4168-96cd-f669065b33f3" alt=""><figcaption></figcaption></figure>

After supplying liquidity, you can borrow your desired asset. Review the amount, select a gas speed, and confirm.

**4.Repay the borrow**

<figure><img src="https://915115796-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F3EQ0uFpO0WhywcZcLMWr%2Fuploads%2FjT0XNVYbrQ0ijMOCl4Pc%2Fimage.png?alt=media&amp;token=0af6036b-4945-4931-bc50-0d390b3450c6" alt=""><figcaption></figcaption></figure>

Repay your borrow to reduce debt, make your position safer, and free up more collateral.

**5.Withdraw the liquidity**

<figure><img src="https://915115796-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F3EQ0uFpO0WhywcZcLMWr%2Fuploads%2FscgjjOWf4uPsl2aAMbih%2Fimage.png?alt=media&amp;token=7f831d87-dcdc-45c8-a8c6-ca824e1cdc4c" alt=""><figcaption></figcaption></figure>

Withdraw your supplied liquidity and check your health factor before confirming.

#### 4. Review Key Info

Before confirming the trade, review the following details:

* **Health Factor**\
  Health Factor shows how safe your position is when you have borrowed assets.
  * **Above 2.0** → Your position is safe
  * **1.0** **- 2.0** → Risk is increasing
  * **Below 1.0** → Your position may be liquidated
* **Pool liquidity**\
  Pool liquidity is the total amount of assets available in the protocol for users to borrow or swap.
* **LTV (Loan-to-Value)**\
  LTV (Loan-to-Value) is the percentage of your supplied assets that you can borrow.
* **APY (Annual Percentage Yield)** \
  APY (Annual Percentage Yield) is the estimated yearly return you can earn on your assets.