# Lending

Lending function is critical component of leverage yield farming protocol. They provide liquidity to the platform and enable users to earn passive income. The interest rate is determined by the demand and supply of the assets on the platform. 

The lending function in Pacman Finance can provide higher yields compared to traditional lending protocols. Investors can choose the leverage ratio and farming strategy that suits their investment goals and risk appetite

<figure><img src="/files/Uerk4Lgv5qhBZg5xLUOT" alt=""><figcaption></figcaption></figure>


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