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Create OTC offers

Tenor OTC lets counterparties express offers outside of standardized markets. Counterparties can specify custom durations, any loan token, any set of collateral assets, and any rate. Each offer also specifies the LLTV and oracle to use for each collateral asset.

OTC covers cases that standardized markets do not serve well: long-tail collateral assets that are not listed in public markets, large offers that would not fill at a reasonable rate against standard market depth, and offers with custom terms, such as an allowlist gate that restricts participation to a specific set of counterparties.

Create offer​

Create an offer by specifying:

  • Loan token and side: sell (borrow) offer or buy (lend) offer
  • Collateral asset(s) and amount (for sell (borrow) offers)
  • LLTV per collateral asset
  • Oracle per collateral asset
  • Term
  • Rate
  • Counterparties (optional): see Gated offers
  • Liquidation grace period (optional): see Liquidation grace periods

Offers are settled onchain. Once an offer is published, anyone (or any allowlisted counterparty, on a gated market) can accept it.

Take offer​

Any counterparty (or any allowlisted counterparty, on a gated market) can take an offer that has been published onchain. Taking an offer settles the position immediately at the offer's terms.

Verify offer terms before taking

Because OTC offers can specify any oracle, any collateral asset, and any LLTV, deceptive actors may publish offers with misleading parameters: oracles that report inflated prices, unfamiliar or unsafe collateral tokens, or LLTVs set aggressively high. Before taking an OTC offer, verify the oracle source and address, confirm the collateral token contract, and review the LLTV against the volatility of the collateral. The same checks apply when creating an offer that targets a counterparty-supplied parameter set.

Exit early​

As a borrower, you can repay early: repay at par, create a limit offer to exit, or exit at market rate if the lender has already published an exit offer.

OTC renewal offers​

OTC offers do not support auto-renewal. When a position approaches maturity, one side has to publish a renewal offer that the other side then takes onchain:

  • The borrower can publish a sell (borrow) offer for the renewed terms; the lender takes it to roll the position forward.
  • The lender can publish a buy (lend) offer for the renewed terms; the borrower takes it to roll the position forward.

If neither side publishes and takes a renewal offer before maturity, the position matures and settles normally.