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Gated markets

Gated markets restrict participation to an allowlist of approved counterparties, giving access to permissioned collateral types and structures that are not available in permissionless markets.

How it works​

A gated market has an allowlist of approved addresses. The gate has independent permissions for lending, borrowing, and liquidating. The market owner can permit an address to lend but not borrow, or authorize a separate set of liquidators. The owner manages the allowlist and can add or remove counterparties as compliance requirements change. If the owner permanently gives up ownership, the allowlist becomes immutable and can no longer change.

As a lender, you get controlled exposure to specific counterparties or KYC'd participants. As a borrower, you get access to collateral types and structures that are not available in open markets.

Gated markets are typically used for:

  • Tokenized real-world assets (RWAs) and other permissioned collateral
  • Compliance-restricted lending where participants must satisfy KYC requirements
  • Institutional and OTC venues where the market owner needs to control who participates

For the underlying allowlist mechanism, see the technical documentation on the Midnight Allowlist Gate.