> For the complete documentation index, see [llms.txt](https://liquid-stacking.gitbook.io/liquid-stacking-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://liquid-stacking.gitbook.io/liquid-stacking-docs/use-cases/lending-borrowing.md).

# Lending/Borrowing

Use stSTX as collateral in lending/borrowing platforms

In our opinion, the killer use case for a liquid stacking token is to borrow against.

Currently, when a person decides to participate in Proof of Transfer, they lock up their STX tokens and lose the liquidity (i.e. the tokens value) related to it. This is suboptimal and not very efficient.

Once we have a token that accrues value and autocompound (stSTX), it will become a pristine token within the Stacks ecosystem to borrow against.