> ## Documentation Index
> Fetch the complete documentation index at: https://docs.solana.vanna.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# How Vanna Works

> Lending pools, cross-margin accounts, Pyth prices, Jupiter swaps, and Kamino yield on one Solana program.

Vanna has two connected sides. Liquidity providers supply assets into per-mint lending pools and receive vTokens. Margin users deposit collateral, borrow from those pools, and deploy the proceeds into swaps, perps, or Kamino.

<div className="vpb2-wrap">
  <div className="vpb2-orb-violet" />

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  <div className="vpb2-header">Credit flow</div>

  <div className="vpb2-flow">
    <div className="vpb2-node vpb2-node--pool">
      <div className="vpb2-node-role">Lenders</div>
      <div className="vpb2-node-title">Lending pools</div>

      <div className="vpb2-node-divider" />

      <div className="vpb2-node-items">
        <div className="vpb2-node-item"><span className="vpb2-dot vpb2-dot--purple" />SOL · USDC · stocks</div>
        <div className="vpb2-node-item"><span className="vpb2-dot vpb2-dot--purple" />vToken receipts</div>
        <div className="vpb2-node-item"><span className="vpb2-dot vpb2-dot--purple" />Kink-model APR</div>
      </div>
    </div>

    <div className="vpb2-arrows">
      <div className="vpb2-arrow vpb2-arrow--right">
        <div className="vpb2-arrow-lbl vpb2-arrow-lbl--green">Borrow</div>

        <div className="vpb2-arrow-track vpb2-arrow-track--green" />
      </div>

      <div className="vpb2-arrow vpb2-arrow--left">
        <div className="vpb2-arrow-lbl vpb2-arrow-lbl--red">Repay + interest</div>

        <div className="vpb2-arrow-track vpb2-arrow-track--red" />
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    </div>

    <div className="vpb2-node vpb2-node--account">
      <div className="vpb2-node-role">Traders</div>
      <div className="vpb2-node-title">Margin PDA</div>

      <div className="vpb2-node-divider" />

      <div className="vpb2-node-items">
        <div className="vpb2-node-item"><span className="vpb2-dot vpb2-dot--violet" />One account per wallet</div>
        <div className="vpb2-node-item"><span className="vpb2-dot vpb2-dot--violet" />Health factor > 1.1</div>
        <div className="vpb2-node-item"><span className="vpb2-dot vpb2-dot--violet" />Up to 24 assets</div>
      </div>
    </div>

    <div className="vpb2-arrows">
      <div className="vpb2-arrow vpb2-arrow--right">
        <div className="vpb2-arrow-lbl vpb2-arrow-lbl--violet">Deploy</div>

        <div className="vpb2-arrow-track vpb2-arrow-track--violet" />
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      <div className="vpb2-arrow vpb2-arrow--left">
        <div className="vpb2-arrow-lbl vpb2-arrow-lbl--violet">Unwind</div>

        <div className="vpb2-arrow-track vpb2-arrow-track--violet" />
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    <div className="vpb2-node vpb2-node--defi">
      <div className="vpb2-node-role">Venues</div>
      <div className="vpb2-node-title">Solana DeFi</div>

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      <div className="vpb2-node-items">
        <div className="vpb2-node-item"><span className="vpb2-dot vpb2-dot--blue" />Jupiter swap routing</div>
        <div className="vpb2-node-item"><span className="vpb2-dot vpb2-dot--blue" />Kamino main market</div>
        <div className="vpb2-node-item"><span className="vpb2-dot vpb2-dot--blue" />Pyth equity feeds</div>
      </div>
    </div>
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  <div className="vpb2-footer">
    <div className="vpb2-footer-badge">Risk engine</div>
    <div className="vpb2-footer-text">Every borrow, withdraw, swap, Lite open, and liquidation reconstructs the full collateral + debt + Lite set. Pyth prices the book. Accounts at or below 1.1 can be liquidated.</div>
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</div>

## Follow the assets

* **Earn** moves wallet assets into a Vanna reserve. You receive vTokens. This does not automatically back your margin debt.
* **Margin deposit** moves wallet assets into your margin PDA vault. The live SPL balance *is* the collateral.
* **Borrow** moves reserve cash into that vault and opens a debt-share position.
* **Perps / Swap** change which tokens the vault holds. Debt stays on the account.
* **Farm** can CPI-deposit into Kamino or swap stock proceeds into Kamino's USDC/SOL main-market reserve.

## Account health

Health factor is recognized collateral USD divided by debt USD. An account with debt must stay **strictly above 1.1**. Lite/Kamino receipts, interest, and oracle moves all count.

See [Core Concepts](/learn/overview) for the accounting model.