Lend

How a market is defined

A Morpho Blue market is fixed by five values: the token lent (here USDG), the collateral token (for example NVDA), the oracle that prices one in the other, the interest-rate model, and the liquidation threshold, called LLTV. Nobody can change them after the market exists. The stock markets use an LLTV of 62.5%. Morpho Blue lives at 0x9D53d5E3bd5E8d4Cbfa6DB1ca238AEA02E651010.

Lending USDG

Supplying USDG to a market earns the interest its borrowers pay, shared among all lenders. Rates in the stock markets are high because nearly everything supplied is borrowed. The same fact means a withdrawal can only take what is not lent out at that moment.

Borrowing against a stock

1. 1
   Post collateral

   Approve the stock token, then supply it as collateral with supplyCollateral. It stays yours, locked in the market.

2. 2
   Borrow

   Borrow USDG up to a level you are comfortable with, below the LLTV. The app shows your loan to value before and after.

3. 3
   Watch the ratio

   Your loan to value is the debt divided by the collateral's value at the oracle price. If the stock falls, the ratio rises.

4. 4
   Repay and withdraw

   Repay any amount at any time, then withdraw the collateral that is no longer needed.

Liquidation

If your loan to value goes above the market's LLTV, anyone may repay part of your debt and take collateral worth more than they repaid. That bonus is the liquidation penalty. Keep a margin: stock tokens can move when the US market opens, and an issuer pause can stop you from adding collateral at the worst moment.

loanToValue = debt / (collateral x oraclePrice)
liquidatable when loanToValue > lltv          // 0.625 for the stock markets

Liquidity today

The stock-collateral markets are small and highly used. A market can show a high supply rate with very little left to borrow. The app shows supply, borrow and available liquidity for each market before you act.