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Lend order types

Tenor supports two order types for initiating a lend position: market orders and limit orders. Market orders fill immediately at the best available rate; limit orders post a target rate and wait for a match.

Lend market orders​

A market order is a take that fills immediately at the best rate currently available. The lender accepts the rate counterparties are offering at that moment, and the position is initiated right away.

If there is not enough liquidity to fill the full amount, the take fills up to the available liquidity and the remainder is left as a resting buy (lend) offer.

Lend limit orders​

A limit order is a buy (lend) offer that specifies the rate and term the lender wants to lend at. The offer rests until a counterparty is willing to take it at that rate or better. A limit order can be cancelled at any time before it is filled.

Limit orders are useful when a lender has a specific rate in mind and is comfortable waiting for a match. There is no guarantee of execution if no counterparty takes the offer. While the order is unfilled, you choose what happens to your capital: it can earn the variable rate in a Morpho vault, or it can sit idle in your wallet. Both paths leave the order itself unchanged, only the location of the funds differs.

Earn while you wait​

When enabled, your funds are deposited into a Morpho Vault V2 that allocates to a Morpho Blue variable-rate market with the same collateral asset as the fixed-rate market. The vault is unmanaged, immutable, and allocates into a single variable-rate market.

When a borrower takes the offer, funds are programmatically withdrawn from the vault and the fixed-rate lend position is initiated. If the order fills partially, the remaining amount stays in the vault and keeps earning until it is filled or the order expires. If the order expires or is cancelled, the funds are withdrawn from the vault back to your wallet. You can withdraw from the vault at any time before the order fills, provided there is sufficient liquidity.

Example​

Suppose you place a limit order to lend 10,000 USDC at 8% fixed for 1 month using cbBTC as collateral, with Earn while you wait enabled:

  • Immediately, the 10,000 USDC is deposited into the Morpho Vault V2 that allocates entirely to the cbBTC/USDC variable-rate market on Morpho Blue, and you begin earning the variable rate.
  • When a fixed-rate borrower takes the offer, the funds are withdrawn from the vault and the lend position initiates at 8% for 1 month.
Earn while you wait flow: capital is deposited into a Morpho Vaults V2 earning the variable rate while the limit order is unfilled; when a borrower takes the offer the funds are withdrawn from the vault and a fixed-rate position is initiated.

Sit idle​

The lend asset (e.g., USDC) stays in your wallet while the order is open. When a borrower takes the offer, the funds are pulled from the wallet to fund the fixed-rate position. If the order expires or is cancelled, nothing moves, the funds were never deposited anywhere.

You earn nothing while the order waits. The tradeoff is simplicity: no vault interaction, no withdrawal step, and no exposure to vault risk.

Advanced controls​

Lend ladder offers​

A ladder is a set of linked limit offers placed across multiple maturities at the same time, all backed by the same pool of capital. For example, a lender can post four offers of 100 USDC across the 1-week, 2-week, 1-month, and 3-month markets. The same 100 USDC backs every offer: once one fills, the rest are cancelled automatically.

Ladders let a lender target several (rate, maturity) combinations using the same funds. They are useful when the lender wants to take whichever rate fills first, or when they don't yet know which maturity will attract a borrower. Under the hood, a ladder is implemented as multiple grouped signed offers that share the same capital.

Multi-collateral offers​

A multi-collateral offer is a single limit order exposed to multiple markets that share the same loan token but use different collateral. For example, a 1,000 USDC offer can be made available simultaneously to the USDC/cbBTC, USDC/WETH, and USDC/wstETH markets. The same 1,000 USDC backs every market: whichever offer fills first claims the funds, and the offer is removed from the others.

This exposes the same capital to multiple markets without splitting it. Borrowers across multiple collateral types can fill against the same liquidity, and the lender only manages one offer. Like ladders, multi-collateral offers are implemented as multiple linked signed offers backed by a single capital allocation.

Market making​

Market makers can programmatically allocate to lend at a specific rate, exit at a lower rate, and sit in the variable-rate market while not holding an open fixed-rate position.

The Migration Intent Ratifier handles this for lend-side flows: entering Morpho Midnight from a vault allocating to a Morpho Blue market, and exiting back to the vault. Setup is a one-time authorization plus per-leg parameters; from then on, takers can settle on the market maker's behalf inside the limits set in the configuration.