> For the complete documentation index, see [llms.txt](https://docs.loopfi.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.loopfi.xyz/target-users.md).

# Target Users

### 1. Lenders

{% hint style="success" %}
Lenders earn passive yield coming through interest charged from leveraged Liquid Restaking strategies.
{% endhint %}

Lenders provide the *ETH* that is used to perform carry trades. By depositing *ETH*, lenders can mint *lpETH* which can be used across DeFi to earn points and yield. *lpETH* stakers are earning the borrowing interest charged from Loopers.

### 2. Loopers

{% hint style="success" %}
Loopers earn actively leveraged restaking yield by performing carry trades.
{% endhint %}

Loopers borrow *ETH* from the protocol for an interest to buy yielding collateral (e.g., Pendle LRT LP tokens) with it. If the yield of the collateral is greater than the interest charged, they have a successful carry trade and their `Net Position Value` increases over time. The higher the `Loop Factor`, the more capital is borrowed in comparison to their provided principal.

The interest charged for borrowing *ETH* is distributed among *dLP* lockers and *lpETH* stakers. By locking >5% of their `Total Looped Position Size` in the dLP, Loopers unlock *LOOP* emissions to reduce their borrowing cost.

### 3. dLP Lockers

{% hint style="success" %}
dLP Lockers govern over the protocol, earn passive yield and unlock *LOOP* emissions to aligned users.
{% endhint %}

The dLP describes the liquidity provider token of *LOOP*, consisting of 80% *LOOP* and 20% *lpETH*. Protocol revenue generated not only goes to *lpETH* stakers but also to *dLP* Lockers. The lock can be for either one, three, six, nine, or twelve months; the longer the lock, the greater the boost the user will receive to their voting power and real yield. 

By granting *LOOP* emissions only to *LOOP* liquidity providers, the full potential of the Loop flywheel is gated to the most protocol aligned users while guaranteeing deep liquidity for the native token.

<figure><img src="/files/seAqMYPfF9DNwGuOn4R6" alt=""><figcaption><p>Loop Target Users</p></figcaption></figure>


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