# Lending

## RWA Lending <a href="#what-is-fixed-rate-lending-with-spine-finance" id="what-is-fixed-rate-lending-with-spine-finance"></a>

Users can deposit and use approved RWAs on ZonaLend to earn yield and access untapped capital via an overcollateralized loan. Assets are reviewed based on:

1. Market demand (i.e. size of asset, user requests)
2. Available liquidity (i.e. market depth, trading volume)
3. Volatility (i.e. historical price movement)
4. Infrastructure (i.e. DEX integrations, oracle availability)
5. Issuer (i.e. background, track record, lindiness)
6. Risk (i.e. default risk, redemption risk, regulatory risk)

## Who is lending on ZonaLend designed for? <a href="#who-is-fixed-rate-lending-designed-for" id="who-is-fixed-rate-lending-designed-for"></a>

Lending on ZonaLend is designed for:

1. RWA investors seeking utility for their idle RWA tokens. One such use-case is to deposit RWAs as collateral to take out an overcollateralized stablecoin loan. The loaned capital can then be used for other investments or perform leveraged looping on the same asset, allowing users to earn enhanced yield.
2. DeFi users who want to deposit their stablecoins or crypto-assets (i.e. WETH) to earn yield when RWA investors borrow these via an overcollateralized loan.

## What kind of RWAs will Zona support? <a href="#what-happens-at-maturity-for-lending" id="what-happens-at-maturity-for-lending"></a>

ZonaLend aims to support three categories of assets:

1. **In-house RWAs** tokenized by Zona. The first in-house RWA will be Zona's Parkhub Tokens, which represent a share of a portfolio of parking spaces tokenized and managed by Zona. Parkhub Tokens provide users with a safe baseline yield of \~5%, delivering strong risk-adjusted returns.
2. **Third-party RWAs** tokenized by other issuers. This includes a vast array of asset types, ranging from Treasury Bills, equities, real estate, commodities, and more.
3. **Crypto-native assets** such as USDT, USDC, WETH, and others.

## Are there any fees associated with lending? <a href="#transaction-fees" id="transaction-fees"></a>

No, there are no fees charged for user supplying their assets on ZonaLend.


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