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The teleBTC instant pool is a single asset pool that facilitates instant cross-chain transfer and exchange of teleBTC. Users can take loans from the instant pool based on the value of their collateral. Providers who add liquidity to the instant pool earn instant settlement fees. Providing liquidity for these pools is safe:
- Since the teleBTC instant pool is a single-asset pool, there is no risk of impermanent loss for instant pool providers. This makes it a great choice for hodlers who want to earn interest on their BTC.
- Instant loans are backed by collateral, which means that borrowers have to deposit a certain amount of collateral in order to take out a loan. The value of the collateral is greater than the value of the loan. Borrowers have a limited time to repay the loan, or their collateral will be liquidated, meaning that it will be sold to repay the loan. The teleBTC obtained from the liquidation will be used to repay the loan.