# 2.1 Provision of assets

Unlike an exchange or peer-to-peer platform, where the assets of one user are compared and lent to another user, the Flip protocol aggregates the provision of each user; When a user provides an asset, it becomes a fungible resource. This approach offers much more liquidity than direct loans; Unless all assets in a market are borrowed (see below: the protocol encourages liquidity), users can withdraw their assets at any time, without waiting for a specific loan to mature. Assets supplied to a market are represented by an ERC-20 token balance ("Flip Token"), which entitles the owner to an increasing amount of the underlying asset. As the money market accrues interest, which is a function of the demand for loans, the tokens become convertible into an increasing amount of the underlying asset. In this way, earning interest is as simple as having an ERC-20 Flip Token.
