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What is Tenor?

Tenor is a non-custodial fixed-rate borrowing platform built on top of Morpho V2. It provides advanced features and a powerful interface that abstract away the complexity of fixed-rate, fixed-term borrowing. The platform also includes advanced functionalities for sophisticated users.

Overview​

The Tenor platform allows users to borrow and lend onchain at fixed interest rates for defined terms, using the Morpho V2 infrastructure.

  • Positions are matched peer-to-peer on the Morpho V2 protocol.
  • Liquidity is provided by lenders and vaults managers directly through Morpho V2.

Tenor expands Morpho V2's capabilities with smart contracts and features that introduce:

  • Auto-renewal at maturity: Automatically renew a borrow position before maturity into longer-dated fixed-term position or into an open term position on Morpho Blue. The Tenor smart contracts eliminate the need for manual intervention and minimizes the risk of liquidation at maturity.
  • Conditional Offers: Allows users to create limit orders that execute only when specific conditions are met, such as:
    • Lend at the variable rate until the lend limit order gets executed at a fixed rate, mitigating the opportunity cost while the limit is pending.
    • Borrow across multiple markets at a limit rate. Once executed, a callback deposits the required collateral.
  • Custom Offers: Lets borrowers create offers to borrow against long-tail assets with bespoke terms. These offers can be filled by lenders (e.g. curators, lending desks, or other counterparties).
  • Alerting: Receive email or SMS notifications when a position's health deteriorates or nears renewal. This enables timely actions like rolling forward or topping up collateral to avoid liquidation.
  • Streamlined interface: Provides an intuitive UI for fixed-rate borrowing on Morpho V2. Users can track position health, roll or settle positions, and manage collateral, all with reduced friction.

By using Tenor, users benefit from:

  • Predictable rates: Lock in fixed rates to avoid managing and unwinding positions due to rate volatility.
  • Efficient matching: Matches borrowers and lenders peer-to-peer for optimal execution and improved capital efficiency.
  • Liquidity and security: Leverages the robust, audited infrastructure of the Morpho Protocol. Enables users to retain full control of their assets by interacting directly with Tenor and Morpho smart contracts.
  • Advanced tooling and execution: Auto-renew loans before maturity to avoid liquidation, set limit orders, create custom offers, enable custom liquidation methods.

Products​

The platform consists of three complementary products, each designed to meet the needs of distinct market segments:

  • Tenor is a passive, borrowing product that allows users to borrow stablecoins at fixed rates against blue chip collateral such as BTC, ETH.
  • Tenor Pro is a product for sophisticated DeFi users, funds, lending desks who want to borrow or lend at fixed-rates using limit orders and access more advanced markets. It also allows borrowers to create custom offers for any asset, specifying terms such as LTV, maturity, and collateral type, which can be matched by Curators and other counterparties.