Market participants
There are three types of market participants in LendBook: lenders, borrowers, and takers.
This diagram encapsulates the relationship of the market participants and LendBook, for a ETH/USDC market (Here lenders can lend USDC, borrowers can borrow USDC with ETH as collateral, and takers can trade USDC for ETH and vice versa).
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Lenders :
They deposit liquidity as limit orders at specified prices. These orders can be borrowed, which earns them interest.
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Borrowers :
They deposit collateral in an account (in the smart contract) in order to borrow assets posted by lenders.
They pay interest rates on their borrowing positions.
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Takers :
They can trade assets when market price reaches the limit price of orders they want to take. They can take all or a portion of the non-borrowed part of limit orders. No fees applied on the trade.