# Unlocking Capital from Locked Governance Tokens&#x20;

Paydax allows users to borrow money using governance tokens like veCRV or veLYNX,&#x20;even if those tokens are locked and cannot be transferred or sold. These types of tokens are&#x20;usually locked for long periods (sometimes years) so users can vote on protocol decisions or&#x20;earn special rewards. In most platforms, once you lock these tokens, your funds are stuck&#x20;and can't be used elsewhere, which limits your financial flexibility.

Paydax solves this problem by accepting these locked tokens as collateral. This means you&#x20;can still benefit from holding them (like voting power or staking perks) while also using their&#x20;value to borrow blue-chip assets. You get access to your funds without giving up your locked&#x20;tokens or waiting for the lock-up period to end. This feature gives users more freedom to use&#x20;their capital and makes it easier to participate in DeFi without losing control of long-term&#x20;investments.
