# Introduction

## What is vires.finance?

Vires.finance is is a decentralized non-custodial liquidity protocol based on Waves Blockchain, where users, wallets and dapps can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralised manner.

## Why use vires.finance?

Vires.finance utilizes common pool-based mechanics where all funds deposited participate in interest-bearing activities equally. *Being based on Waves Bockchain, it utilizes extremely low fees(\~only few cents per transaction)* making it highly attractive for both high and low volume deposits and loans.

## How do I use the service?

In order to use the service, you simply **supply** your preferred assets . After **supplying**, you will earn passive income based on the market borrowing demand. Depositing assets allows you to **borrow** other assets by using your deposited assets as a collateral.

Additionally, some tokens(for example, WAVES and USDN) are safely staked within the ecosystem to earn additional income for the depositors.

## Where are my deposited funds stored?

Your funds are stored in a system of smart contracts. The code of the smart contract is public, open source. You can withdraw your funds from the pool or export a tokenised (vTokens) version of your lender position. Learn more about vTokens in the [corresponding section](https://docs.vires.finance/faq/vtokens).

## Is there any risk?

The risks related to the vires.finance protocol are mostly smart contract risks(risk of a bug within the protocol code) and liquidation risk (risk on the collateral liquidation process). You can find more details in the [Terms of Use ](https://docs.vires.finance/g1/terms-of-use#4-assumption-of-risk)section.

## VIRES token

 \- Stakers of the VIRES token participate in direct governance by proposing and voting for system parameters. 

 \- Stakers of the token take a cut from the interest that borrowers pay.