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OTC Offers

Tenor's OTC feature enables borrowers and lenders to reach bespoke agreements outside of standardized markets. This flexibility is particularly valuable for currencies, risk profiles, or collateral that don't align with liquid market structures. Borrowers can broadcast these offers either to the entire market or to specific counterparties, including vault curators, lending desks, and funds.

OTC Offers Types​

Tenor OTC offers provide the personalization of over-the-counter negotiations while maintaining the benefits of onchain settlement. Borrowers can ask quotes from lenders or create offers directly. When asking for a quote a borrower can ping a set of counterparties and ask them to select an LLTV, oracle, and rate.

Tenor also provides borrowers with the following options when creating an OTC offer:

  • Whitelisted Counterparty: Borrowers can restrict their offer to specific counterparties such as trusted curators or lending desks.
  • Delayed Liquidations: When entering an OTC agreement, borrowers can specify a liquidation method that includes a grace period after the initial breach of maximum LTV. During this period, borrowers can either repay their position or add more collateral to avoid liquidation. Borrowers have flexibility in setting their preferred grace period duration. Lenders evaluating these terms may require lower liquidation LTVs to compensate for the additional risk of price movements during the grace period.