> For the complete documentation index, see [llms.txt](https://support.backpack.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://support.backpack.exchange/technical-docs/borrow-and-lend/lending.md).

# Lending

You can start lending on Backpack in two ways.

## **Method # 1 - Manual Lend**

Lend your assets manually through the **Lend page** or the **Lend modal**. Interest generated from your lends is automatically added to your balance and compounded.

## **Method # 2 - Auto Lend**

Auto Lend is a subaccount setting that automatically lends all available assets sitting in a subaccount into the lending pool. When Auto Lend mode is enabled, you can seamlessly start lending by depositing assets to your subaccount or buying an asset that is eligible to be lent out.

{% embed url="<https://youtu.be/qDejftTzJwI>" %}

## **Redeeming**

To provide the most seamless and flexible user experience, all lends are redeemed automatically to the maximum extent possible (see note below) for the user, regardless of whether Auto Lend is enabled or disabled. You can redeem your assets in the following ways:

1. **Spot Trading** - lends will be automatically redeemed to cover any spot trades. For example, if you are lending USDC and wants to buy BTC, your USDC will be redeemed automatically from the lending pool in order to cover the trade.&#x20;
2. **Withdrawing** - you can also simply withdraw their lent assets without having to manually redeem them. At the time of withdrawal, Backpack will redeem their lends from the lending pool and process the withdrawal.
3. **Manual Redeem** - if you no longer wants to lend, but don't need to trade or withdraw the funds, you can simply manually redeem their assets from their Lend page or the Lend modal (only if Auto Lend isn’t enabled).

**Important to note:** you can redeem your lends as long as the utilization rate for that given asset allows it. In order to prevent the utilization rate from reaching 100%, Backpack implements a throttling threshold, in which no lends can be redeemed and no additional borrows can occur until the utilization rate dips below that threshold (via more lends or more people repaying their borrows). More detail on this further below.


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