Money Market

Supply-Side

Users supplying assets to borrowers will receive interest paid by borrowers. Deposits can be (in most cases) collateralized and borrowed against. Assets supplied on debt side cannot be borrowed against. Generally, things like stablecoins are borrowable. Whereas long-tail assets such as LP tokens, and liquid wrappers can only be used as collateral.

Yield on deposits is influenced by:

  • The yield of the underlying assets in the case of LP tokens or liquid wrappers.

  • The borrow demand.

New pool tokens can be added at the discretion of the DAO.

After depositing, lenders will receive a dToken (debt token) minted from the Curvance protocol. This token represents their share in the lending pool and is needed to redeem their deposit.

Earned interest is automatically compounded into the users’ position.

Key Characteristics:

  • Using yield-bearing assets as collateral eliminates the need to sell them while preserving exposure.

  • Accessing leveraged loans amplifies the users’ exposure to the collateral assets, thereby increasing potential yields. However, this also increases liquidation risk.

  • Ensuring the users’ capital remains productive by generating yield while capitalizing on additional growth opportunities.

Demand-Side

Collateral

Long-tail assets deposited to the platform automatically generate the maximum yield through yield optimization. The user can opt to allow the deposited assets to be enabled as collateral in isolated- or cross-margin markets to be able to borrow against them.

Primitive assets, such as Liquid Staking Derivatives or interest-bearing stablecoins that do not need to be compounded are also supported.

Whitelisting Collateral

  1. Go to the main dashboard, where all supplied assets are located.

  2. Find the assets you have supplied.

  3. Flip the switch to enable the desired assets as collateral.

Remember: The corresponding ERC-4626 vault will point the assets back to the underlying platform in order to earn optimized yield.

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