> For the complete documentation index, see [llms.txt](https://docs.uxd.fi/uxdprotocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.uxd.fi/uxdprotocol/overview/on-chain-lending/native-lending.md). # Native Lending Similar to other CDPs, such as DAI, UXD will manage a "native lending module" that will function by minting newly created UXD into the supply pools of various overcollateralized lending markets in order to (i) influence interest rates (ii) generate yield. Functionally, this means that UXD Protocol can "mint" new UXD stablecoin into these lending pools in order to help control interest rates on UXD overcollateralized borrowing, by varying the supply of the lending pool. This is because on most borrow/lend platforms, the interest rate is purely a function of the "Utilization Rate" or the percent of supplied assets that have been actually borrowed. Moreover, since these newly minted UXD stablecoins do no enter circulation unless borrowed on an overcollateralized basis, the process of native lending is logically the same as the standard overcollateralized minting process for other stablecoins like DAI or RAI. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.uxd.fi/uxdprotocol/overview/on-chain-lending/native-lending.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.