> For the complete documentation index, see [llms.txt](https://docs.canto.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.canto.io/technical-reference/architecture-and-design/canto-lending-protocol.md).

# Canto Lending Protocol

Canto’s Lending Protocol is deployed on the network's native EVM (Ethermint) and is based on [Compound Protocol](https://compound.finance/) v2. The main differences between Canto Lending and Compound are:

1. There is no Canto Lending specific token. ([Comp is Compound's ERC-20 token](https://github.com/compound-finance/compound-protocol/blob/master/contracts/Governance/Comp.sol).) Instead, Canto’s ERC20 network token is used as the incentive token on Canto Lending. [Comptroller](https://github.com/compound-finance/compound-protocol/blob/master/contracts/ComptrollerG7.sol) smart contract gives out the token rewards. This file is modified to instead give out Canto rewards.
2. Governance on Canto Lending is controlled by Canto network validators rather than the Decentralized Application. Here is how it works:
   * Proposals are initiated on the Network side (Cosmos runtime) and voted on by network Validators as specified in the [SDK governance module](https://docs.cosmos.network/master/modules/gov/). The lending protocol governance has a specified proposal type that is custom to Canto and exactly matches Compound's proposal type.
   * After the proposal is approved, Canto's custom UniGov then sends the proposal type to the EVM module where it can be retrieved by a smart contract call to a specific address (”oracle address”).
   * When the proposal is retrieved, it is stored in the queue and then executed in the same manner as traditional governance outlined in [Compound's Governor Bravo](https://github.com/compound-finance/compound-protocol/blob/master/contracts/Governance/GovernorBravoDelegateG2.sol) after a proposal is approved.

Since the Canto Lending Protocol is closely based on Compound, you can find more information about its architecture in the [Compound Protocol documentation](https://github.com/compound-finance/compound-protocol/blob/master/README.md).


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.canto.io/technical-reference/architecture-and-design/canto-lending-protocol.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.