> For the complete documentation index, see [llms.txt](https://taolend.gitbook.io/taolend-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://taolend.gitbook.io/taolend-docs/platform-overview.md).

# Platform Overview

## What is Taolend?

> Taolend is a peer-to-peer (P2P) lending platform built on the Bittensor EVM chain, focused on facilitating lending between TAO and ALPHA tokens.

## Core Features

### P2P Offer Matching Mechanism

Taolend uses a distinctive P2P offer-based matching model:

* **Lenders Create Offers**: Freely define interest rates, amounts, collateral requirements, and other terms
* **Borrowers Select Offers**: Browse the market and choose offers with the best conditions
* **Peer-to-Peer Lending**: Every loan establishes a direct, transparent relationship between a lender and a borrower

### Leverage Trading

Taolend supports leverage trading, enabling users to amplify their exposure to Alpha tokens:

* **Combined Capital**: Use your own TAO alongside borrowed TAO to purchase Alpha tokens
* **Alpha as Collateral**: The purchased Alpha is deposited as collateral to back the leveraged position
* **Amplified Exposure**: Gain greater exposure to Alpha price movements than your own capital alone would allow

### Lending Assets

* **Lent Asset**: TAO (Bittensor native token)
* **Collateral**: ALPHA (Bittensor subnet token)

### Key Parameters

| Parameter                    | Description                                                                                    |
| ---------------------------- | ---------------------------------------------------------------------------------------------- |
| Minimum Loan Amount          | 1 TAO                                                                                          |
| Collection Protection Period | 3 days (21,600 blocks)                                                                         |
| Collection Grace Period      | 3 days (21,600 blocks) after entering collection                                               |
| Daily Interest Rate Range    | 0.01% – 1% \*                                                                                  |
| Protocol Fee                 | 30% of interest (70% to lenders)                                                               |
| Safety Margin                | 90% of ALPHA price                                                                             |
| Leverage Position Risk       | Position must be closed within grace period upon lender collection, or principal is fully lost |

> Loans cannot be collected or liquidated within the first 3 days. After this period, lenders are allowed (but not forced) to initiate collection.

\* Interest is calculated per block. 1 day = 7,200 blocks.

## How It Works

### Lenders

1. Deposit TAO into the contract
2. Create offers using offline signatures (no on-chain transaction required)
3. Wait for borrowers to accept the offer
4. Earn interest automatically while the loan is active
5. Withdraw principal and interest after repayment

### Borrowers

1. Deposit ALPHA as collateral
2. Browse available offers in the marketplace
3. Select the best offer and initiate the loan
4. Receive TAO liquidity instantly
5. Repay at any time or refinance to optimize costs

### Leverage Traders

1. Deposit TAO into the contract
2. Open a leverage position — the platform borrows additional TAO on your behalf to purchase Alpha
3. Alpha tokens are automatically deposited as collateral to secure the position
4. Monitor the position health and Alpha price movements
5. Close the position at any time to repay the loan and retrieve remaining collateral

> ❗️ If a lender initiates collection, you must close your position immediately. Failure to do so within the 3-day grace period will result in liquidation and **total loss of your principal**.

## Get Started

* 📖 [Quick Start](/taolend-docs/quick-start.md) – Get up to speed in 5 minutes
* 💡 [Core Functions](/taolend-docs/core-features.md) – Explore the platform mechanics in depth
* ❓ [FAQ](/taolend-docs/faq.md) – Answers to frequently asked questions