# Lenders

The *Lenders* are crypto/DeFi native users and institutions, who are looking for a set in stone solution allowing them to capture а part of the interest the market-neutral strategies are generating on centralized exchanges and private capital markets without the complexity of running the infrastructure to execute the trades or having access to an institutional-grade lending desk.

* **Single-borrower pool**: You decide who to lend to. No more consolidated risk among dozens of borrowers. You are lending to a single entity, executing a clear investment strategy. Not a number of lenders, most of whom you have never head of.
* **Fixed terms**: Fixed maturity that matches your investment horizon. Predictable, fixed in-kind yield locked today. Fixed collateral - both in terms of type and coverage levels. 
* **Risk management**: Full transparency. Independent credit ratings. Permissionless collateral custody and transfer. 
* **Yield on every asset**: Stables and blue chips are widely available. On top of them, LombardFi improve markets’ capital efficiency by making mid-, smallcap or obscured assets productive again.

**How does it work?**

<figure><img src="https://1612310208-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F64vTtPRU0nHKzsSl6UGw%2Fuploads%2FR4SH2ydzvTibge4FNRrw%2FScreenshot%202023-01-05%20at%2012.34.07.png?alt=media&#x26;token=75c62429-a98f-45b5-bc55-882a24a0b593" alt=""><figcaption></figcaption></figure>

The key parameters of each loan requested are defined in the so-called “[Term Sheet](https://docs.lombard.fi/protocol-design/term-sheet)” that is presented to the Lenders once the pool is created and the bonding period begins.