# Welcome to WEN Protocol

WEN Protocol is a decentralized, censorship-resistant, and community-owned protocol that enables users to secure loans using [Liquidity Staking Derivatives (LSDs)](https://defillama.com/lsd) as collateral. These loans have minimal fees and provide up to 7x leverage, with repayments made in wenUSD.

The WEN Protocol codebase is derived from [Liquity](https://www.liquity.org/), retaining its [features](https://www.liquity.org/features/interest-rate) while also supporting multiple LSDs as collateral, In the early stages of the project, WEN will use pufETH as the only collateral.

**wenUSD** is over-collateralized by LSDs and maintains a 1:1 peg to the USD.

**$WEN** and **esWEN (escrowed WEN)** are the native and governance tokens of the system.