> For the complete documentation index, see [llms.txt](https://docs.xei.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xei.finance/product-guides/faq/what-is-lending-pools.md).

# What is Lending Pools?

Lending Pool is a decentralized financial service that allows users to lend or borrow assets for trading. It functions through individual liquidity pools for each trading pair, ensuring that the funds are highly aligned with specific trades. Users can deposit assets into these pools to earn interest, or borrow from them for trading.