While the collateral is staked, LatteSwap's smart contracts will stake the collateralized LP tokens on behalf of the position owners, earning them farming rewards. At the same time, the $FLAT borrowed can be used to provide LP to the $FLAT-BUSD liquidity pool at LatteSwap to earn LATTE incentive rewards, or swapped into BUSD and used for other purposes both inside and out side the cryptocurrency space.