> For the complete documentation index, see [llms.txt](https://colend.gitbook.io/home/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://colend.gitbook.io/home/ecosystem/earn-and-borrow.md).

# Earn & Borrow

Colend is a platform where users can deposit their assets to earn passive income. By supplying their assets, users can start earning interest immediately. Additionally, these deposited assets can be used as collateral for borrowing, providing users with the flexibility to both earn and access liquidity when needed.

{% hint style="info" %}
For detailed instructions on how to deposit assets on Colend, please refer to[ the step-by-step guide in the **How To** section.](/home/how-to/use-colend/connect-and-supply.md)
{% endhint %}

### Understanding Your Earnings

Your returns on supplied assets come from two main sources:

* **Interest from Borrowers**: You earn a portion of the interest that borrowers pay, calculated based on the average borrow rate and the asset's utilization rate. More utilization translates to higher returns.
* **Flash Loan Fees**: Earn from Flash Loans with a fee of the loan volume attributed to suppliers.

The APY (Annual Percentage Yield) for each asset varies based on market conditions and is [viewable in real-time on our platform.](https://app.colend.xyz/markets/)

<figure><img src="/files/FwqKf7i65xonMOECL8dD" alt=""><figcaption></figcaption></figure>

### Supply Limits and Considerations

* **No Minimum Supply**: There is no minimum amount required to start supplying, making it accessible for everyone.
* **Transaction Costs**: For very small supplies, be aware that transaction costs might outweigh the earnings.
* **Supply Caps**: Some assets may have supply caps as determined by governance, which limits the total supply available.

### Borrowing and Rate Options

* **Fixed and Variable Rates**: You can choose between stable (fixed) and variable borrowing rates, but only one rate type can be applied per asset at any time.
* **Diverse Portfolio**: It's possible to have different rates for different assets within your portfolio.


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