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

# User Guide and examples

* Step-by-step guide for new users on how to engage with **ioLend**.
* Best practices for leveraging, investing, and managing risks.

#### Guide for 1 click loop:

Users can deposit [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click), [$USDT](https://x.com/search?q=%24USDT\&src=cashtag_click), and [$ETH](https://x.com/search?q=%24ETH\&src=cashtag_click) as collateral, borrow assets against them, and reinvest those borrowed assets. This process can be repeated multiple times, amplifying the potential of the initial capital. We call this the "Infinite money loop."

<figure><img src="/files/XGDRZVNqt4gQhetrEekm" alt=""><figcaption></figcaption></figure>

There are two main participants in the [@iolendfi](https://x.com/iolendfi) market:&#x20;

**The Lender**: User who deposits his money for others to borrow. The lender receives yield on their deposited assets when it's utilized.&#x20;

**The Borrower**: User who borrows money from the lender. The borrower pays interest on the borrowed assets until the loan is repaid.

Here’s an example:&#x20;

User A has 10 [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) tokens and wants to acquire more [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) because he believes the price of [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) will rise. He can deposit 10 [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) into [@iolendfi](https://x.com/iolendfi) and one click loop it until he reaches up to 3.3x leverage on his initial position.

<figure><img src="/files/I5LABe3QIRxNWMcNiFLK" alt=""><figcaption></figcaption></figure>

The user started with 10 [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) in his wallet, and now he is earning yield on 32.35 [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click). This means, the user borrowed 22.35 [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) tokens on which he has to pay interest now. Even thought borrowing interest is higher than lending interest, he will also earn [$IOL](https://x.com/search?q=%24IOL\&src=cashtag_click) token which makes his loop profitable.

In order to earn the [$IOL](https://x.com/search?q=%24IOL\&src=cashtag_click) token incentives on the deposit/borrow user needs to hold 5% of his total deposit/borrow balance in [$IOL](https://x.com/search?q=%24IOL\&src=cashtag_click) - [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) token LP which can be "Zapped in" on top of the page. Once the requirement is met, user is earning [$IOL](https://x.com/search?q=%24IOL\&src=cashtag_click) token emissions.

**Risk Management!**&#x20;

While infinite money loops offer high yield potential, they also carry risks. Make sure to monitor your position in order to not get liquidated during volatile market movements.