> For the complete documentation index, see [llms.txt](https://rebalance.gitbook.io/rebalance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rebalance.gitbook.io/rebalance/borrowing-optimization/self-paid-borrowing.md).

# Self-paid Borrowing

Among borrowing tools available, the standout feature is a self-paid borrowing. This mechanism is genuinely self-sustaining, as it doesn't rely on external token incentives or the precarious strategy of leveraging risky collateral. Instead, it's powered by the stability of REBALANCE's interest-bearing (IB) tokens.

### **How It Unfolds**

1. A borrower deposits 1,000 USDT into the REBALANCE lending strategy pool.
2. They receive 1,000 rUSDT in their wallet, representing their deposit.
3. Using the 1,000 rUSDT as collateral, the borrower then opens a borrowing position on the REBALANCE borrowing market.
4. The profit generated from the IB-tokens is distributed among the borrower, the liquidity provider (LP), and REBALANCE, following a 10/45/45 split.

This system fosters a harmonious profit-sharing system that benefits all parties involved.

<figure><img src="/files/azKQ3OkEzXeySg7rCTke" alt=""><figcaption></figcaption></figure>


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