Markets

Liquidity pools — whether arranged via delta or star topology — are grouped into markets. A market bundles a set of pools under a common administrative boundary and is the unit at which access and risk are scoped.

Because liquidity and its associated lending sit inside a market, any liquidity debt arising from producers or suppliers is contained to that market. A shortfall in one market cannot propagate to pools in another; losses are borne only by participants of the affected market. This containment is the primary safety property of the market layer.

Permissionless jungle

In this market all asset supply funds are isolated, so no contagion is possible.

Permissioned sponsor

Each market is governed by a sponsor who defines its policy: which assets participate, which topology applies, the risk parameters that bound producers and suppliers, and — where applicable — who is allowed to join. Markets may therefore be permissioned, enabling distinct venues for distinct risk profiles and participant sets. Asset supply funds will only accept collateral from the pools in that specific market.