# Mechanism

## Borrowers <a href="#borrowers" id="borrowers"></a>



1. Borrowers select the preferred protocol for points farming and specify the leverage size and borrowing asset they want
2. Leverage users deposit collateral and choose their leverage size to request lending capital
3. NX Finance matches the borrowing request, securing adequate liquidity in the lending pool
4. The necessary capital is sourced from the lending pool to meet the requested leverage amount
5. Borrowers receive the points and pay APR (according to real-time utilization rate) to the lenders

## Lenders <a href="#lenders" id="lenders"></a>



1. Lenders deposit USDC to the lending vault
2. NX Finance matches the borrowing request, securing adequate liquidity in the lending pool
3. Borrowed capital combines with the deposited collateral to mint / swap the corresponding tokens
4. Lenders enjoy extra APR paid by borrowers

<figure><img src="https://1014032567-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FqWZZySI6X2fuVa7sc0Jn%2Fuploads%2FuMNDedbWrhgzx8a12hnr%2Fimage.png?alt=media&#x26;token=4b153cb3-2cee-4f7f-b019-ca16f934b5d4" alt=""><figcaption></figcaption></figure>
