Each collateral (usually an NFT collection) has it's own lending pools.
Lending pools match borrowers and lenders of a same collateral. Lenders supply liquidity (USDC or SOL,WETH, WMATIC ...) to an NFT collection's associated lending pool. Borrowers can borrow this money by depositing their NFTs as collateral.
There are three main participants in Honey lending pools:
Borrow money by depositing NFTs as collateral. Interest accrues on open positions with a variable interest rate. Each position has a loan to value ratio as well as a liquidation threshold. If the value of the collateral goes down, or the loan is not sufficiently paid down, the NFT can be liquidated.
When borrowing, users are allowed to withdraw based on their allowance. The allowance can be defined as, how much value are you able to receive as a percentage of the floor price.
Create lending pools on the platform and set an admin fee. Liquidations and interest repayments will include this fee, generating revenue for the pools admin. Admins can be DAOs, projects, or individuals.