# FAQs

<details>

<summary><strong>What is the Junior Pool(JLP)?</strong></summary>

The JLP is where approval of loans happen, and comes with the highest rewards per USDC, since it is the first loss capital.

</details>

<details>

<summary><strong>What is the Senior Pool(SLP)?</strong></summary>

The SLP is the lowest risk pool and works to pay the remainder of a loan, once 20% of a loan has been approved by backers of the JLP. Since the risk is lower, the pool rewards are lower as well.

</details>

<details>

<summary><strong>What is the Investment Pool (ILP)?</strong></summary>

The ILP is where you stake the LODA token, which rewards you with the LODESTAR token (governance token). The ILP works to defend the SLP investments from defaults.\
How does Governance work?\
Voting power comes from holding the LODESTAR token which is minted by staking LODA in the ILP.

</details>


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