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Market Initialization

Market Structure​

Each Tenor Market represents a unique set of the following parameters:

  • Set of Collateral Assets
  • Loan Token
  • LLTV
  • Oracle
  • Interest Rate Parameters (bpsPerTick, maxTick)

Loan Asset and Collateral Asset Selection​

  • LoanTokenAddress: The address of the loan token associated with the pool.
  • FixedTokenAddress: The address of the fixed token associated with the pool.
  • Maturity: The maturity date or duration of the pool.
  • MaxTick: The maximum tick value for the pool.
  • BpsPerTick: Basis points per tick, which defines the granularity of interest rate increments within the pool.
  • loanTokenIsERC4626: If the Loan Token is an ERC4626

Example Configuration:

  • Loan Token: sUSDe
  • Fixed Token: Pendle PT-sUSDe-2025-12-31
  • Maturity: 2025-12-31
  • Max Tick: 30
  • BPS per Tick: 100 (1%)
  • Loan Token Is ERC4626: False

Market Creation​

Market creation is permissionless on Tenor's MarketManager contract. Anyone can list a Tenor market as long as the provided inputs are correct. Market initialization only occurs once.

While market creation is permissionless, the PoolManager contract set to create the fixed rate pools can be permissioned.

Market Identification​

Each Market is uniquely identified by a Market Id. The Market Id corresponds to the market's Loan Token address. Each market has a unique Loan Token, a variable rate yield bearing token representing the market's deposits on the Morpho underlying Money Market.