> For the complete documentation index, see [llms.txt](https://quadrat.plasma.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://quadrat.plasma.finance/defi-lego-with-quadrat-protocol/lending.md).

# Lending

Quadrat Protocol represents Uniswap v3 liquidity pools via LP token using standard ERC-20.&#x20;

If you represent a Lending Protocol (like **AAVE** or **Compound**), you can integrate Quadrat LP ERC-20, for example for USDT/USDC v3 pool, as a collateral asset in your protocol to borrow USDT or USDC funds.

As Uniswap v3 Pool LP's position can be fully immutable and have a low-risk profile (volatility and liquidation), LP assets can be very safe DeFi collateral assets. A good example of such a model is G-UNI LPs which are used by MakerDAO as collateral for DAI.

{% embed url="<https://twitter.com/MakerDAO/status/1532079938756567046>" %}

If your protocol wants to increase your Uniswap v3 Token Pool liquidity, you can integrate your Pool Quadrat LP in any permissionless Lending Protocol and allow users to borrow and deposit assets in your pool with massive leverage on-chain.
