# Profit Generation Principle ### Borrower Interest and Fees The primary source of profit for lenders comes from the interest paid by borrowers. When borrowers take loans, they pay interest on the borrowed amount. This interest is collected by the protocol and distributed to the lenders as a return on their provided liquidity. Additionally, borrowers may incur various fees associated with their loans, which also contribute to the lenders' earnings. ### Auto-Staking of Lender Assets & Collaterals A unique feature of our protocol is the auto-staking of assets lent. This means that while your assets are being lent out, they are getting automatically staked in various staking pools. Staking process generates rewards in the form of additional tokens, which are then shared with the lenders. This dual-earning mechanism significantly enhances the potential returns for lenders, as they are eligible for rewards from both our protocol and the native staking mechanisms of the networks to which their assets belong. --- # 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://flary-finance.gitbook.io/flary-finance/interaction-with-flary/profit-generation-principle.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.