> For the complete documentation index, see [llms.txt](https://multilend.gitbook.io/multilend/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://multilend.gitbook.io/multilend/overview/what-problems-does-multilend-solve.md).

# What problems does MultiLend solve?

### Problems of current Lending and Leverage protocols

#### Restricted asset types

* Current Lending and Leverage markets like Aave and GMX only support a very limited number of assets.
* Less-popular, but vast and legitimately valuable assets, are unlikely to ever be approved.

#### Inefficient Governance

* Current Lending protocols manually adjust interest rates, collateralization requirements, and other parameters. These key parameters are manipulated by specific parties rather than market forces.
* This greatly limits capital efficiency and may potentially harm the protocol and the interests of most users due to incorrect or malicious governance decisions.

#### Risk of price feed manipulation

* Current Lending protocols rely heavily on external price feeds, and key aspects such as liquidation and borrowing are all dependent on oracles.
* Once oracles are manipulated, the potential losses for borrowing users could be incalculable. And such situations have occurred several times, in cases like AAVE and Mango.

### MultiLend's Solution

#### No need for governance

* Pool utilization determines interest rates. 
* Lenders determine collateralization ratios.

#### No need for permission

* Users can create lending pools for any token without the need for permission and provide supply token for them, similar to creating trading pairs on Uniswap. 

#### No need for price feed

* Lenders decide the lending prices at which they value collateral. This also determines the borrower's collateralization ratio. 
* Liquidation Criterion is determined by the LUP and the user's TP.
  * LUP: The lowest lending price among utilized supply token or “lowest utilized price” is called the LUP.
  * TP: The TP of a loan is the price at which the value of the collateral equals the value of the debt.
* Dutch auction and Liquidation bonds ensure appropriate liquidations.