# Protocol Lavarage is a decentralized non-custodial margin liquidity protocol. It is designed to work on top of existing trading liquidity on decentralized exchanges. It is like a money market platform built specifically for the purpose of making DeFi trading more capital efficient for traders. ### Three Components 1. Lending - lenders create lending pool(s) and for each pool, they can create multiple loan offers which specify the loan terms, e.g. interest rate, maximum open LTV, maximum exposure, etc for different tokens 2. Staking - stakers stake liquidity into lending pool(s) to earn yield 3. Trading - traders borrow liquidity from lending pool(s) to do margin trading on DEXs. When a margin spot long position is opened, the purchased tokens are locked in a smart contract and are used as the collateral. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://lavarage.gitbook.io/lavarage/platform/protocol.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.