# Lending

## Borrowing risk

COINONE's loan is not a credit loan, so you need to deposit certain assets before you can borrow. You can deposit different assets to earn interest, or you can lend any type of assets in the pool to meet your financial needs and get block rewards. Of course, the price of \[Pledged Assets] or \[Lending Assets] will fluctuate. In order to avoid debts and bad debts, the system will freeze the pledged assets and sell them at a discount.

## Borrowing interest rate and calculation formula

APY calculation formula for deposit and loan mining:

Deposit mining APY = current market deposit per block output CONE\**CONE price / market total deposit value \**&#x31;0512000

Loan mining APY = current market borrowing per block output CONE\**CONE price / total market borrowing value \**&#x31;0512000 (10512000 is the number of blocks produced per year in the BSC chain)

Interest rate floating formula: When the borrowing rate is less than the turning point, the interest rate formula is: base interest rate + interest rate multiplier *lending rate When the lending rate is greater than the turning point, the interest rate formula is: base interest rate + interest rate multiplier* turning point + (borrowing Out rate-inflection point) \* Magnified interest rate multiplier

Deposit interest ((supplyRatePerBlock *28800 + 1)^364-1)\**&#x31;00%

Borrowing interest ((borrowRatePerBlock *28800 + 1)^364-1)\**&#x31;00%
