# How does Tinlake work? **URL:** \ **Category:** Tinlake/ Centrifuge app\ **Created:** [May 26, 2021, 11:21pm UTC](https://gov.centrifuge.io/t/how-does-tinlake-work/2203 "2021-05-26T23:21:48Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![demiculus](https://avatars.discourse-cdn.com/v4/letter/d/74df32/32.png) [@demiculus](https://gov.centrifuge.io/u/demiculus)\ **Post date:** [May 26, 2021, 11:21pm UTC](https://gov.centrifuge.io/t/how-does-tinlake-work/2203/1 "2021-05-26T23:21:48Z")
Can someone explain this to me like I am 5? [https://tinlake.centrifuge.io/](https://tinlake.centrifuge.io/) I’m not sure but here is what I understand, we invest X amount of Dai which means lock up right? So we get all of our Dai back. Then we get some DROP & TIN? I’m so confused about how this works. ---
**Author:** ![Tjure07](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/tjure07/32/1039_2.png) [@Tjure07](https://gov.centrifuge.io/u/Tjure07)\ **Post date:** [May 27, 2021, 8:55am UTC](https://gov.centrifuge.io/t/how-does-tinlake-work/2203/2 "2021-05-27T08:55:36Z")
Hi demiculus. The best way to understand Tinlake is by reading the Tinlake user documentation. In there everything is explained in detail [https://docs.centrifuge.io/learn/understanding-tinlake/#introduction](https://docs.centrifuge.io/learn/understanding-tinlake/#introduction) ---
**Author:** ![demiculus](https://avatars.discourse-cdn.com/v4/letter/d/74df32/32.png) [@demiculus](https://gov.centrifuge.io/u/demiculus)\ **Post date:** [May 28, 2021, 1:33pm UTC](https://gov.centrifuge.io/t/how-does-tinlake-work/2203/3 "2021-05-28T13:33:13Z")
Oh man this is pretty complicated. I’ll need to read it a few times to understand I wish there was a Alice, Bob type of an example. Alince owns a house, she NFTs the house. Bob is an investor, he puts up 1000 DAI. Alice takes the DAI and renovates the house. Alice rents out the house. Alice earns rent money. Alice pays all of her investors including BOB DAI. Bob pulls out 1025 DAI. Ofc a bit more detailed. But names & real numbers always makes something easier to understand. ---
**Author:** ![Tjure07](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/tjure07/32/1039_2.png) [@Tjure07](https://gov.centrifuge.io/u/Tjure07)\ **Post date:** [May 28, 2021, 2:16pm UTC](https://gov.centrifuge.io/t/how-does-tinlake-work/2203/4 "2021-05-28T14:16:18Z")
Thanks for your remarks. Your ears will be burning. Do you know the new Centrifuge explainer video? [https://www.youtube.com/watch?v=23nQWgO4AfA](https://www.youtube.com/watch?v=23nQWgO4AfA) ---
**Author:** ![demiculus](https://avatars.discourse-cdn.com/v4/letter/d/74df32/32.png) [@demiculus](https://gov.centrifuge.io/u/demiculus)\ **Post date:** [May 28, 2021, 2:49pm UTC](https://gov.centrifuge.io/t/how-does-tinlake-work/2203/5 "2021-05-28T14:49:40Z")
Ohh yea this video is great, thank you. I should have skipped all the texts and just went for vids. Cool, now I know better. Now I need to figure out how to navigate the information on Tinlake. Why does all the pools have 5000dai limit 😕 Seems like a barrier to entry. And all the kyc makes it even more non-decentralized. Doesn’t make much sense in this regard, no? ---
**Author:** ![Tjure07](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/tjure07/32/1039_2.png) [@Tjure07](https://gov.centrifuge.io/u/Tjure07)\ **Post date:** [May 29, 2021, 10:34am UTC](https://gov.centrifuge.io/t/how-does-tinlake-work/2203/6 "2021-05-29T10:34:00Z")
Because the asset originators have to take certain costs of implementing their pools and to run their business. They have set the minimum investment because without a limit it would be too cost intensive. The limit was already lowered from 10K to 5K and maybe some day it will be adjusted again.