# Welcome

<mark style="color:purple;">**Liquidity providers**</mark> play a crucial role in the protocol as they provide their funds in the selected liquidity pools and make the same available to borrow through <mark style="color:purple;">**flash loans**</mark><mark style="color:purple;">.</mark>

The protocol has different pools, denominated in different assets (though there can exist multiple pools for the same asset), and anyone can create a xycLoans pool. Lenders earn interest on their deposits as the liquidity of the pools is used: this generates yield <mark style="color:purple;">**without any risk of capital losses**</mark> (as flash loans never lose liquidity by design).

We are going to walk you through the different steps of becoming a liquidity provider and how you can manage your positions to start leveraging the lending opportunities offered by flash loans.
