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Custom Offers

Broadcasting Custom Offers​

Tenor's Custom Offers feature enables borrowers to create bespoke arrangements outside of standardized supported markets. This flexibility is particularly valuable for assets, risk profiles, or collateral arrangements that don't align with existing market structures. Borrowers can broadcast these offers either to the entire market or to specific counterparties, including vault curators, lending desks, and funds.

OTC Offers with Onchain Settlement​

Custom offers provide the personalization of over-the-counter negotiations while maintaining the benefits of onchain settlement and onchain capital formation. Borrowers can send offers directly to curators and lenders, who receive immediate notifications. When a lender accepts an offer, the borrower is promptly notified, creating a seamless transaction flow.

Offer Parameters and Features​

When creating a custom offer, borrowers must specify:

  • Set of collateral assets
  • Borrow asset
  • A set of price oracles
  • A set of Liquidation LTVs (LLTVs)
  • Rate
  • Maturity

Tenor also provides borrowers with several advanced features:

  • Whitelisted Counterparty: Borrowers can restrict their offer to specific counterparties such as trusted curators or lending desks.
  • Delayed Liquidations: When entering a Custom Offer agreement, borrowers can specify a liquidation method that includes a grace period after the initial breach of maximum LTV. During this period, borrowers can either repay their position or add more collateral to avoid liquidation. Borrowers have flexibility in setting their preferred grace period duration. Lenders evaluating these terms may require lower liquidation LTVs to compensate for the additional risk of price movements during the grace period.
  • Collateral Assets held at a custodian (Available Soon): Use collateral assets (e.g. ETH, BTC) held at a qualified custodian as collateral.