> For the complete documentation index, see [llms.txt](https://docs.ethena.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ethena.fi/backing-assets/defi-lending.md).

# DeFi Lending

A portion of the protocol's stable backing assets may be supplied into overcollateralised, on-chain lending markets. In these markets, borrowers post collateral worth more than the value they borrow, and the protocol earns lending revenue from the interest paid by those borrowers.

Ethena supplies into established lending venues - such as markets on protocols including Morpho and Aave - where each market has clearly defined collateral, conservative loan-to-value parameters, and transparent, on-chain activity. Eligible markets, collateral types, and exposure limits are approved subject to governance and Risk Committee review.

[Link to Kamino/Jupiter analysis](https://gov.ethenafoundation.com/t/proposal-lending-usde-backing-assets-into-kamino-and-jupiter-on-solana/785)

DeFi lending extends the protocol's existing comfort with on-chain, transparent, overcollateralised exposure. The revenue it produces is driven by borrowing demand within DeFi, which adds a further source of return that does not depend on perpetual funding rates.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.ethena.fi/backing-assets/defi-lending.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.