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

# Trustin

## What is Trustin？

Trustin is a permissionless lending protocol designed for #BitLayerLabs, driven by a Bitcoin security-equivalent Layer 2 solution built on BitVM. 

At Trustin, you'll be among the early adopters of DeFi on the Bitcoin Layer 2 network. Powered by BitLayer, you can leverage your crypto assets as collateral to borrow the underlying assets more quickly and securely, while also earning interest by supplying assets to the protocol.

## How does TrustIn work?

At Trustin, a separate market is constructed for each type of cryptocurrency's liquidity pool. For instance, all users staking A tokens collectively form an A market. Similarly, all users borrowing A tokens engage in borrowing and repayment within this market, where they also share the borrowing and collateral rates of the A market. This ensures that risks and rewards are evenly distributed among all users, without significant concerns arising from a small portion of defaults.

Simultaneously, Trustin introduces the concept of "reserve funds." The system allocates a portion of the loan interest as reserve funds based on a reserve fund coefficient, aimed at addressing protocol losses.