General
Where are collateral assets deposited?
Collateral assets are deposited into the Morpho protocol, a non-custodial, permissionless, and immutable set of smart contracts.
Are my collateral assets rehypothecated?
No. Tenor does not rehypothecate collateral assets. Collateral assets are deposited into the Morpho protocol, a non-custodial, permissionless, and immutable set of smart contracts allowing users to remain in control of their digital assets at all times.
How is the interest rate determined?
The interest rate of positions initiated through Tenor is determined by the market where lenders and borrowers are matched peer-to-peer, and is fixed for the duration of the position.
How are markets created?
With Morpho V2, markets are intent-based and peer-to-peer. They are created when a lender and borrower are matched. Tenor streamlines this process through a simple interface for matching against existing offers. Tenor also supports the creation of OTC offers with bespoke terms (e.g. LTV, collateral type, maturity).
Can I set the maturity?
Yes. Tenor allows users to select from the maturities available in the market (initially end of the current month and the next month to aggregate liquidity). More advanced users can set custom dates by creating or requesting OTC offers.
How are transactions executed through Tenor?
Transactions must be generated via the user's non-custodial wallet. When a lender or borrower executes a transaction they are matched with a counterparty peer-to-peer using the Morpho protocol. Tenor offers additional smart contracts tools that enable features such as automating position renewals and execution with custom conditions. These contracts are opt-in and can be disabled by the user at any time. Tenor does not execute transactions on behalf of users, Tenor tools are non-custodial and smart contracts are immutable.
Is Tenor secure?
Tenor implements industry-leading security measures. Tenor is built on the Morpho protocol, recognized for its rigorous and battle-tested design. Further details on Morpho's security can be found here.
These various measures should not prevent users from carrying out their own research and assessing associated risks. Users should read the Tenor risk disclosures before interacting with Tenor.