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Market

Curators can permissionlessly create fixed rate markets using the Tenor protocol. Curators can create fixed rate markets using a reference Morpho money market. All risk parameters—such as LLTVs and oracles—are automatically inherited from the reference Morpho market, making market creation simple. Learn how to create a Tenor Market in the Market Curation section.

Once a market is created the protocol stores the market parameters (collateral assets, loan asset, oracle, LLTV, interest rate model). Tenor Markets enables borrowers to deposit collateral assets and mint Fixed Tokens against their collateral. The minting of Fixed Tokens is the primary mechanism enabling borrowers to borrow at fixed rates.

Tenor Markets stores market parameters, collateral assets, mints Fixed Tokens, and stores Fixed Debt. Tenor Markets also keep track of borrowers account's health and enables third parties to liquidate borrower accounts breaching their LLTV.

Features​

Markets in the Tenor protocol unlock a set of unique features in addition to the ones they inherit from Morpho markets. They enable:

  • Fixed Token Minting: Facilitating borrowers and lenders to lend and borrow at fixed rates.
  • Multi-collataral Markets

Tenor Markets share the following features with Morpho Markets:

  • They are immutable, meaning that they cannot be modified once they have been deployed.
  • Each Tenor Market operates independently, isolating risk in the protocol.
  • Their creation is permissionless.

Market Parameters​

The following parameters are required to create a Tenor Market:

  • Morpho Market IDs: of the reference Morpho Markets
  • BPS per Tick: The granularity of interest rate ticks (in basis points) for the pools associated with this market
  • Maximum Rate: The maximum interest rate for the pools associated with this market

A Tenor Marklet inherits the following market parameters from Morpho money markets:

  • Loan Asset
  • Liquidation Loan-To-Value (LLTV) for each collateral asset
  • Liquidation discount for each collateral asset
  • Price Oracle to value each collateral asset

Market ID​

A Tenor Market has a unique ID that corresponds to the address of the Loan Token contract.