> For the complete documentation index, see [llms.txt](https://docs.peapods.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.peapods.finance/lvf-pods/how-self-lending-pods-are-created.md).

# How Self-Lending Pods are Created

### How Self-Lending Pods Are Created

Self-Lending Pods enable instant liquidity provisioning without requiring external lenders upfront. This process involves a **structured multi-step pathway** to efficiently bootstrap a new Pod:

1. **Flashloan Initiation (L1)** – The user initiates a flashloan to borrow the real PairingAsset.
2. **Supplying Liquidity (L2)** – The borrowed PairingAsset is supplied to the lending pool, generating a supply receipt.
3. **Adding to LP (L3)** – The supply receipt is then combined with the original asset to form an LP position.
4. **Collateralization (L5)** – The LP position is deposited as collateral within the Lending contract.
5. **Borrowing Back (L6)** – The user borrows back the PairingAsset using the LP collateral.
6. **Flashloan Repayment (L7)** – The borrowed PairingAsset is used to repay the original flashloan, completing the cycle.

   <figure><img src="/files/SDAQOTc5pkcrKN3nxVVG" alt=""><figcaption></figcaption></figure>